Good day. can you please assist on the following question below Consider the information provided below as well as the financial statements and answer the questions that follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R3 100 100 Cost of sales R390 000 R475 000 a. Calculate the current ratio for Pearson & Litt for 2019 b. Explain the results of the current-test ratio (3). Include the minimum ratio recommended for the ratio in your answer. c. Calculate the gross profit margin for Pearson & Litt for 2020
Good day. can you please assist on the following question below Consider the information provided below as well as the financial statements and answer the questions that follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R3 100 100 Cost of sales R390 000 R475 000 a. Calculate the current ratio for Pearson & Litt for 2019 b. Explain the results of the current-test ratio (3). Include the minimum ratio recommended for the ratio in your answer. c. Calculate the gross profit margin for Pearson & Litt for 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Good day. can you please assist on the following question below
Consider the information provided below as well as the financial statements and answer the questions that follow.
Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co
| 2019 | 2020 | |
| Sales price per unit | R15 | R19 |
| Variable cost per unit | R6 | R7 |
| Fixed cost (FC) per annum | R650 000 | R855 500 |
| Fixed cost per unit | R3 | R4 |
| Current assets | R450 600 | R560 700 |
| Current liabilities | R510 000 | R780 000 |
| Retained profit | R21 809 | R17 600 |
| Net Sales | R2 900 320 | R3 100 100 |
| Cost of sales | R390 000 | R475 000 |
a. Calculate the
b. Explain the results of the current-test ratio (3).
Include the minimum ratio recommended for the ratio in your answer.
c. Calculate the gross profit margin for Pearson & Litt for 2020
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