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

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Question

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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.

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