Question 3Footfall Manufacturing Ltd. reports the following financialinformation at the end of the current year:Net Sales $100,000Debtor’s turnover ratio (based onnet sales)2Inventory turnover ratio 1.25Fixed assets turnover ratio 0.8Debt to assets ratio 0.6Net profit margin 5%Gross profit margin 25%Return on investment 2%Use the given information to fill out the templates for incomestatement and balance sheet given below:Income Statement of Footfall Manufacturing Ltd. for the year endingDecember 31, 20XX(in $)Sales 100,000Cost of goodssoldGross profitOther expensesEarnings beforetaxTax @50%Earnings aftertaxBalance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX(in $)Liabilities Amount Assets AmountEquity Net fixed assetsLong termdebt50,000 InventoryShort termdebtDebtorsCashTOTAL TOTAL
Question 3
Footfall Manufacturing Ltd. reports the following financial
information at the end of the current year:
Net Sales $100,000
Debtor’s turnover ratio (based on
net sales)
2
Inventory turnover ratio 1.25
Fixed assets turnover ratio 0.8
Debt to assets ratio 0.6
Net profit margin 5%
Gross profit margin 25%
Return on investment 2%
Use the given information to fill out the templates for income
statement and balance sheet given below:
Income Statement of Footfall Manufacturing Ltd. for the year ending
December 31, 20XX
(in $)
Sales 100,000
Cost of goods
sold
Gross profit
Other expenses
Earnings before
tax
Tax @50%
Earnings after
tax
Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX
(in $)
Liabilities Amount Assets Amount
Equity Net fixed assets
Long term
debt
50,000 Inventory
Short term
debt
Debtors
Cash
TOTAL TOTAL
Step by step
Solved in 2 steps
