Activity 4: Compute the following financial ratios using the given financialstatements below. Round off your answer to the nearest hundredsa. Gross profit ratiob. Operating income ratioc. Net profit ratiod. Return on asset (ROA)e. Return on equity (ROE)f. Asset turnoverg. Fixed asset turnoverh. Inventory turnoveri.Days in Inventoryj.Accounts receivables turnover ABM StoreStatement of Financial PositionAs of December 31, 2013CashP 84,400Accounts PayableP 67,298Accounts Receivable69,920Loan Payable393,300Inventory218,500Anistle Cruz, Capital413,402Prepaid Rent4,370Total Liabilities and Equity P 874,000Delivery Van493,810Total AssetsP 874,000ABM STOREStatement of Comprehensive IncomeAs of December 31, 2015SalesP 686,000Cost of Goods Sold301,750Gross Profit384,250Operating Expenses205,800Operating Income178,450Interest Expense17,150Net IncomeP 161,300

Net profit ratio is the ratio which states and measures as well as shows how much company has net…

Answered: Compute the following financial ratios…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Activity 4: Compute the following financial ratios using the given financial statements below. Round off your answer to the nearest hundreds a. Gross profit ratio b. Operating income ratio c. Net profit ratio d. Return on asset (ROA) e. Return on equity (ROE) f. Asset turnover g. Fixed asset turnover h. Inventory turnover i.Days in Inventory j.Accounts receivables turnover

ABM Store
Statement of Financial Position
As of December 31, 2013
Cash
P 84,400
Accounts Payable
P 67,298
Accounts Receivable
69,920
Loan Payable
393,300
Inventory
218,500
Anistle Cruz, Capital
413,402
Prepaid Rent
4,370
Total Liabilities and Equity P 874,000
Delivery Van
493,810
Total Assets
P 874,000
ABM STORE
Statement of Comprehensive Income
As of December 31, 2015
Sales
P 686,000
Cost of Goods Sold
301,750
Gross Profit
384,250
Operating Expenses
205,800
Operating Income
178,450
Interest Expense
17,150
Net Income
P 161,300

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