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Given below is AU Chiefs Company's financial statements. Compute for the financial rations and show the solutions in a sheet of paper. 1. Expenses to sale ratio 2. Return on assets 3. Return on Equity 4. Asset Turnover ratio 2020 2019 Cash 122,500 104,700 Accounts Receivable 90,650 80,550 66,200 53,000 Inventory Prepaid Expense Total Current Assets 85,450 106,000 344,250 786,350 1,475,350 364,800 Property, Plant and Equipment 925,000 TOTAL ASSETS 1,654,600 Total Current Liability Long-term Liabilities Mabini, Capital Total Liability and Equity 381,500 359,900 913,200 1,654,600 423,350 230,600 821,400 1,475,350 Sales 1,047,050 1,151,755 Cost of Sales 322,750 355,025 Gross Profit 724,300 796,730 Selling Expenses Administrative Expenses Operating Income Interest Income Net Income 388,575 140,965 267,190 11,550 255,640 353,250 128,150 242,900 10,500 232,400 Interpret the results of your computation for the following rations: 1. Expenses to ratio - 2. Return on assets -

Given below is AU Chiefs Company's financial statements. Compute for the financial rations and show the solutions in a sheet of paper. 1. Expenses to sale ratio 2. Return on assets 3. Return on Equity 4. Asset Turnover ratio 2020 2019 Cash 122,500 104,700 Accounts Receivable 90,650 80,550 66,200 53,000 Inventory Prepaid Expense Total Current Assets 85,450 106,000 344,250 786,350 1,475,350 364,800 Property, Plant and Equipment 925,000 TOTAL ASSETS 1,654,600 Total Current Liability Long-term Liabilities Mabini, Capital Total Liability and Equity 381,500 359,900 913,200 1,654,600 423,350 230,600 821,400 1,475,350 Sales 1,047,050 1,151,755 Cost of Sales 322,750 355,025 Gross Profit 724,300 796,730 Selling Expenses Administrative Expenses Operating Income Interest Income Net Income 388,575 140,965 267,190 11,550 255,640 353,250 128,150 242,900 10,500 232,400 Interpret the results of your computation for the following rations: 1. Expenses to ratio - 2. Return on assets -

FINANCIAL ACCOUNTING
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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2:16 Ь Ь A * all 100% + ACITIVITY 9 FINANCIAL RATIOS Given below is AU Chiefs Company's financial statements. Compute for the financial rations and show the solutions in a sheet of paper. 1. Expenses to sale ratio 2. Return on assets 3. Return on Equity 4. Asset Turnover ratio 2020 2019 Cash 122,500 104,700 80,550 Accounts Receivable 90,650 Inventory 66,200 53,000 Prepaid Expense 85,450 106,000 Total Current Assets 364,800 344,250 Property, Plant and Equipment 925,000 786,350 TOTAL ASSETS 1,654,600 1,475,350 Total Current Liability 381,500 423,350 Long-term Liabilities 359,900 230,600 Mabini, Capital 913,200 821,400 1,475,350 Total Liability and Equity 1,654,600 Sales Cost of Sales Gross Profit 1,047,050 1,151,755 322,750 355,025 724,300 796,730 Selling Expenses 353,250 388,575 Administrative Expenses 128.150 140,965 242,900 10,500 Operating Income 267,190 Interest Income 11,550 Net Income 232,400 255,640 Interpret the results of your computation for the following rations: 1. Expenses to ratio - 2. Return on assets - 3. Return on Equity - 4. Asset turnover ratio - II
Transcribed Image Text:2:16 Ь Ь A * all 100% + ACITIVITY 9 FINANCIAL RATIOS Given below is AU Chiefs Company's financial statements. Compute for the financial rations and show the solutions in a sheet of paper. 1. Expenses to sale ratio 2. Return on assets 3. Return on Equity 4. Asset Turnover ratio 2020 2019 Cash 122,500 104,700 80,550 Accounts Receivable 90,650 Inventory 66,200 53,000 Prepaid Expense 85,450 106,000 Total Current Assets 364,800 344,250 Property, Plant and Equipment 925,000 786,350 TOTAL ASSETS 1,654,600 1,475,350 Total Current Liability 381,500 423,350 Long-term Liabilities 359,900 230,600 Mabini, Capital 913,200 821,400 1,475,350 Total Liability and Equity 1,654,600 Sales Cost of Sales Gross Profit 1,047,050 1,151,755 322,750 355,025 724,300 796,730 Selling Expenses 353,250 388,575 Administrative Expenses 128.150 140,965 242,900 10,500 Operating Income 267,190 Interest Income 11,550 Net Income 232,400 255,640 Interpret the results of your computation for the following rations: 1. Expenses to ratio - 2. Return on assets - 3. Return on Equity - 4. Asset turnover ratio - II
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