Requirement Number 11, 15 and 16 TLC CampanyCompanatiie Statement of Comprehensitve IncomeFor Year 2015 and 201620162015Net Sales700,000900,000Less Cont of Goods Sold(100.000)600,000(80.000)820,000Gross ProfitLess Operuting ExpensesEarnings Before Interest and TaxenLess Interest ExpenseNet Income Before TaxLess Income Tax(50,000)(120,000)550,000700,000(10,000)(50,000)540,000(162,000)378,000650,000(195.000)Net Income455,000Ansuer on a separate sheet. Pad paper or any paper availabie in your hame.Write your NAME:FARM2/uectionDATEDeepen W7:M14-Fin TRationCompute the ration linted below for 2016 and tell if it is good or bad. Show solution.1. Working Capital2. Current Ratio13. Profit Margin Ratio14. Return on Assets15. Return on Equity16. Asset Turnover Ratio3. Quick/Acid Teat Ratio4. A/R Turnover Ratio5. Average Collection Period6. Iniventory Turmover Ratio7. Average Days in Inventory8. Number of Days in OC9. Debt to Total Assets Ratio10. Debt to Equity Ratio11. Times Interest EarnedRutio12. Gros Profit Ratio Comprehensive ProblemTLC Company wus eatablishied on January 1, 2015 and is enguged in themanufacture of farm toolu. The company makes une of 365 days in its computationfor some of the ratios. You will find below their eumparative SFP & SCI for two yearsTLC CompanyComparative Financial StatementFor Year 2015 and 201620162015AnsetaCashAccounts ReceivahleTrailing SecuritienInventaries400,000100,00020,000290,000120,00040,00060,00010,00080,000Prepaid Expenes20,00)Total Current Assets620,000520,000Tatal Non-Current Assets300,000200,000720,000Total Asseta920,000Liabilities18Total Current LiabilitiesTutal Non-Current LiahitiesOwner's Equity50,000450,000100,000350,000Total Owner's EquityTotal Liahilities and Owner's Equity420,000300,000920,000720,000

Time interest ratio indicates ability of the firm to pay interest on the time. It can be found out…

For Year 2015 and 2016 2016 2015 et Sales ess Cost of Goods Sold Gross Profit ess Operating Expenses Carnings Before Interest and Taxen ess Interest Expense 700,000 (100,000) 600,000 (50,000) 550,000 900,000 (80.000) 820,000 (120,000) 700,000 (50,000) (10,000) let Income lefore Tax 540,000 650,000 ess Income Tax Net Income (162,000) (195,000) 378,000 455,000

For Year 2015 and 2016 2016 2015 et Sales ess Cost of Goods Sold Gross Profit ess Operating Expenses Carnings Before Interest and Taxen ess Interest Expense 700,000 (100,000) 600,000 (50,000) 550,000 900,000 (80.000) 820,000 (120,000) 700,000 (50,000) (10,000) let Income lefore Tax 540,000 650,000 ess Income Tax Net Income (162,000) (195,000) 378,000 455,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain the three types of Regulations: Proposed, Temporary and Final. At least half page
Describe the four basic assumptions underlying GAAP.
Explain How is the impairment model of IFRS 9 different from impairment model of IAS 36.
• Name three types/categories of external stakeholders
What are the 6 Types of Input VAT?
What is significant influence as defined by IAS 28 and give four examples of how significant influence is established?
16. Which form of the report should be in proper format with suitable headings, sub-headings, and paragraphs? a. Graphical Form b. All of the options c. Tabular Form d. Descriptive form
Include external stakeholders by naming three different kinds or groups.
Explain the concepts and principles which underlie the SMEs standard