Enrichment Activity 8-1. Financial Statement AnalysisAnalyze the Financial Statements of GnG Mini Mart for 2021 only throughdifferent financial statement ratios. Compare your results to industry ratiosindicated in the next page. Complete the analysis using the ratios provided. Showyour computations.GnG Mini MartStatement of Comprehensive IncomeFor the years ended December 3120212020SalesLess: Sales Discounts938,250131,3551,042,500156,375886,125806,895420,900385,995165,435220,56066,168154,392Net SalesPLess: Cost of Goods SoldGross Profit468,200417,925Less: Operating Expenses187,356Net Income before Tax230,569Less: Income Tax69,171161,398Net Income after TaxGnG Mini MartStatement of Financial PositionDecember 3120212020AssetsCurrent AssetsCash & cash equivalentsTrade & Other Receivables833,75561,515851,40055,50052,115InventoriesPrepaid ExpensesTotal Current AssetsNon Current Assets43,62032,000970,890 P 1,002,21543,200Property, Plant & EquipmentTotal Assets765,800682,500P 1,736,690 P 1,684,715Liabilities & Owner's EquityCurrent LiabilitiesTrade & other payablesNon Current LiabilitiesLoans payableTotal Liabilities137,200 P144,500100,000237,200 P150,000294,500Owner's EquityGnG, CapitalTotal Liabilities and Owner's Equity P 1,736,690 P 1,684,7151,499,4901,390,215GnG RatiosIndustryRatiosRatio1. Current Ratio5.32. Acid Test Ratio5.13. Gross Profit Ratio30%4. Net Income Margin7.5%5. Receivable Turnover Ratio96. Return on Asset Ratio12%7. Debt to Asset Ratio1:4 Interpretation and verbal analysis compared to industry ratios:1.LiquidityProfitabilitySolvencyComputations:2.3.

Name: Enrichment Activity 8-1. Financial Statement AnalysisAnalyze the Fina
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Description: Enrichment Activity 8-1. Financial Statement AnalysisAnalyze the Financial Statements of GnG Mini Mart for 2021 only throughdifferent financial statement ratios. Compare your results to industry ratiosindicated in the next page. Complete the analysi

Solution:- Calculation of financial ratios of GnG Mini Mart for the year 2021 as follows under:-…

Answered: Ratio Industry GnG Ratios Ratios 1.…

Business

Accounting

Ratio Industry GnG Ratios Ratios 1. Current Ratio 5.3 2. Acid Test Ratio 5.1 3. Gross Profit Ratio 30%

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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