Please help with the calculation of Net profit margin, Gross profit margin, Current ratio, Acid test ratio, Accounts receivable collection period, Accounts parable payment period for the question attached Given the following Income Statement & Financial Position of Anne York, a sole trader whostarted the business of buying and selling furniture in BrightonAnne York1st of October 2021Balance SheetOctober 31, 2021Anne YorkAssetsIncome StatementCurrent Assets:For the Month Ended October 31, 2021Bank9,230Sales Revenue5,600Cash6,140Cost of Goods Sold4,830Accounts Receivable150Gross Profit770Inventory320Operating Expenses:Repair ExpenseWages ExpenseRent ExpenseTotal Current Assets£ 15,840110820Property Plant & Equipment:£ 45,000€ 12,000850FlatHotel ExpenseTotal Operating ExpensesOperating Income/ (Loss)Other Income:1,200Car2,980Computer800-£2,210Printer200Laptop1,700 £ 59,700Rent Revenue800Total Assets£ 75,540Net Income/ (Loss)|-£1,410Liabilities and Owner's EquityCurrent Liabilities:Accounts Payable5,150Owner's Equity:Anne York, Capital£ 70,390Total Liabilities and Owner's Equity£ 75,5401. Calculate the following ratios for Anne's business for October 2021Competitors AverageAccounts receivable Accountspayableраymentperiod27 Days12DaysNet profit GrossprofitmarginCurrent Acid testratiomarginratiocollection period16 Days28 DaysYear 20190.320.552.71.34Year 20200.280.562.61.32Year 20210.020.082.81.3826 Days17 Days2. Analyse Anne's perforformance with reference to the ratios of October 2021 calculated, in comparison to those of her competitor.lei

Net profit margin = Net profit (loss) / Sales Revenue = - 1410 / 5600 = - 0.25 Given Net income =…

Please help with the calculation of Net profit margin, Gross profit margin, Current ratio, Acid test ratio, Accounts receivable collection period, Accounts parable payment period for the question attached

Please help with the calculation of Net profit margin, Gross profit margin, Current ratio, Acid test ratio, Accounts receivable collection period, Accounts parable payment period for the question attached

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: How is accounts-receivable turnover computed and what can the calculation tell the owner-manager?

A: Ratio analysis is significant for the financial position of the corporation, profitability,…

Q: What accounts go on the income statement? How are income statements completed?

A: Income statement is a part of the financial statement which is prepared by an organization. Income…

Q: What are revenues that have been earned but not recorded in the accounts called? Group of answer…

A: Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for…

Q: How is a financial ratio analysis performed? Comparing two items in financial statements. Evaluating…

A: Performing a financial ratio analysis involves examining and interpreting various ratios derived…

Q: Which of the following represents amounts owed for goods, supplies, or services purchased? Group of…

A: The question is asking to identify the term that represents the amounts that a company owes for…

Q: accounting When a company makes a sale on credit, what does the account receivable represent on…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: What are the accounts that appear on the revenue statement? What is the procedure for completing…

A: The revenue statement and procedure for completing income statements:

Q: What is a prepaid expense and where is it reported in the financial statements?

A: Prepaid expense: Prepaid expenses are any expenses that is paid before it becomes due. A prepaid…

Q: By the percent of sales method how determine the amount of the adjusted balance of accounts…

Q: From page 5-3 of the VLN, what is the appropriate relationship to compute net accounts receivable?…

A: Customers who have received goods or services from a business but haven't yet made payment are said…

Q: Question: What is the formula for calculating the net profit margin? a. Net Profit / Revenue b.…

A: The income statement is prepared to record the revenue and expense of the current period. The income…

Q: compare the current rate method and the temporal method, evaluate how each aff ects theparent…

A: Under the current rate method, assets and liabilities are translated at the current exchange rate,…

Q: The amount reported on the balance sheet for accounts receivable (gross accounts receivable minus…

A: The Trade Accounts Receivable are indeed an highly liquid assets that can be easily converted into…

Q: How is the balance sheet related to the income statement?

A: Balance sheet is a part of financial statements that lists company’s assets, liabilities and…

Q: 1) What is the difference between Interest Receivables and Account Receivables and Interest…

Q: How is the account Unearned Fees classified and what kind of balance should it have? Group of answer…

A: A current liability is an obligation for the company that has to be paid off within a year. It would…

Q: What is the connection between an account's balance sheet equation position and the rules for…

A: The connection between an account's balance sheet equation position and the rules for recognizing…

Q: Is there a certain order in listing the expense accounts of an income statement?

A: Yes, as per international financial reporting standards the income statement is to be prepared in…

Q: Clear Copy Co. Worksheet For month ended December 31, 2021 Unadjusted Trial Balance Adjusted Trial…

A: Post Closing Trial Balance - Under Post Closing balance there is balances of accounts after closing…

Q: What are the the main classifications/types of accounts? Income statement accounts Balance sheet…

A: Account means the systematic record of various transactions entered by businesses. Income statement…

Question

100%

Given the following Income Statement & Financial Position of Anne York, a sole trader who
started the business of buying and selling furniture in Brighton
Anne York
1st of October 2021
Balance Sheet
October 31, 2021
Anne York
Assets
Income Statement
Current Assets:
For the Month Ended October 31, 2021
Bank
9,230
Sales Revenue
5,600
Cash
6,140
Cost of Goods Sold
4,830
Accounts Receivable
150
Gross Profit
770
Inventory
320
Operating Expenses:
Repair Expense
Wages Expense
Rent Expense
Total Current Assets
£ 15,840
110
820
Property Plant & Equipment:
£ 45,000
€ 12,000
850
Flat
Hotel Expense
Total Operating Expenses
Operating Income/ (Loss)
Other Income:
1,200
Car
2,980
Computer
800
-£
2,210
Printer
200
Laptop
1,700 £ 59,700
Rent Revenue
800
Total Assets
£ 75,540
Net Income/ (Loss)
|-£
1,410
Liabilities and Owner's Equity
Current Liabilities:
Accounts Payable
5,150
Owner's Equity:
Anne York, Capital
£ 70,390
Total Liabilities and Owner's Equity
£ 75,540
1. Calculate the following ratios for Anne's business for October 2021
Competitors Average
Accounts receivable Accounts
payable
раyment
period
27 Days
12Days
Net profit Gross
profit
margin
Current Acid test
ratio
margin
ratio
collection period
16 Days
28 Days
Year 2019
0.32
0.55
2.7
1.34
Year 2020
0.28
0.56
2.6
1.32
Year 2021
0.02
0.08
2.8
1.38
26 Days
17 Days
2. Analyse Anne's perforformance with reference to the ratios of October 2021 calculated, in comparison to those of her competitor.
lei

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Net profit margin

Gross profit margin

Current Ratio

Acid test Ratio

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In which of the following types of accounts are increases recorded by credits? Question 8 options: Revenue, Dividends Liability, Revenue Dividends, Asset Expense, Liability
Sales Returns and Allowances account is report it like a. contra-revenue account on the income statement. b. current liability on the balance sheet. c. deduction from accounts receivable on the balance sheet. d. selling expense on the income statement.
Write the difference between accounts receivable and notes receivable.
Which is the CORRECT order for items to appear on the income statement? Group of answer choices sales revenue, gross profit, net income, operating expenses cash, accounts receivable, inventory, property/plant/equipment, intangible assets sales revenue, operating expenses, gross profit, net income sales revenue, cost of goods sold, gross profit, operating expenses sales revenue, gross profit, cost of goods sold, operating expenses
How to find Total Debt to Total Assets ration using an income statement, balance sheet or cash flow.
How to calcuate the taxes on the income statement under operating expense. Please provide an example. Using numbers from an income statement.
when putting together an income statement do the revenues and expenses have to put in order from highter amount to lowest?
Under the direct charge-off method, when a specific account receivable is written off, what account is debited and what is the effect of the write-off on net income and on assets? debit Accounts Receivable; the write off decreases net income and total assets debit Allowance for Uncollectible Accounts; the write off increases net income and total assets debit Uncollectible Accounts Expense the write off decreases net income and total assets debit Uncollectible Accounts Expense; the write off increases net income and total assets A
(24) Which account would be reported on the income statement? A. Interest Expense B. Notes Payable C. Interest Payable D. Wages Payable