Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity: 1. Profitability Ratios a) Gross Profit Margin b) Return on Equity c) Return on Assets 2. Leverage Ratio a) Debt-to-Equity 3. Liquidity Ratios a) Current Ratio b) Quick-Asset Ratio
Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity: 1. Profitability Ratios a) Gross Profit Margin b) Return on Equity c) Return on Assets 2. Leverage Ratio a) Debt-to-Equity 3. Liquidity Ratios a) Current Ratio b) Quick-Asset Ratio
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 64E: ( Appendix 6B) Inventory Costing Methods: Periodic System Harrington Company had the following data...
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Question
Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity:
1. Profitability Ratios
a) Gross Profit Margin
b) Return on Equity
c) Return on Assets
2. Leverage Ratio
a) Debt-to-Equity
3. Liquidity Ratios
a) Current Ratio
b) Quick-Asset Ratio
![1
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के मे दी है।
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A
Gross Sales
Less:
Net Sales
Less:
Add:
Sales Returns & Allowances
Sales Discount
Cost of Goods Sold
Beginning Inventory - January 1
Purchases
Gross Profit
Less:
Add: Freight In
Total
Less: Purchase Return & Allowances
Purchase Discount
B
Net Purchases
Total Goods Available for Sale
Less: Ending Inventory
Cost of Goods Sold
Operating Expenses
Selling Expenses
Sales Salaries Expense
The Green Valley Merchandising
Income Statement
For the Year Ended December 31,
Uncollectible Accounts Expense
Advertising Expense
Depreciation Expense - Store Equipment
Store Supplies Expense
Miscellaneous Selling Expense
Total Selling Expenses
General & Administrative Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense - Office Equipment
Office Supplies Expense
Miscellaneous Administrative Expense
Total Administrative Expense
Total Expenses
Net Income from Operations
Other Income
Rental Income
Total Income
Less:
Other Expenses
Interest Expense
Net Income
C
5,050.00
2,450.00
D
270,000.00
3,100.00
273,100.00
7,500.00
37,625.00
5,625.00
12,500.00
3,750.00
1,475.00
800.00
22,575.00
13,000.00
2,700.00
1,900.00
675.00
825.00
E
5,950.00
3,550.00
90,000.00
265,600.00
355,600.00
98,000.00
61,775.00
41,675.00
F
457,500.00
9,500.00
448,000.00
257,600.00
190,400.00
103,450.00
86,950.00
10,400.00
97,350.00
5,800.00
91,550.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab5a315-ac91-4016-9f01-63eee514f78d%2F7541dee4-ba45-4b6f-8c00-ed59d3ce8e18%2F04r9m6a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
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के मे दी है।
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A
Gross Sales
Less:
Net Sales
Less:
Add:
Sales Returns & Allowances
Sales Discount
Cost of Goods Sold
Beginning Inventory - January 1
Purchases
Gross Profit
Less:
Add: Freight In
Total
Less: Purchase Return & Allowances
Purchase Discount
B
Net Purchases
Total Goods Available for Sale
Less: Ending Inventory
Cost of Goods Sold
Operating Expenses
Selling Expenses
Sales Salaries Expense
The Green Valley Merchandising
Income Statement
For the Year Ended December 31,
Uncollectible Accounts Expense
Advertising Expense
Depreciation Expense - Store Equipment
Store Supplies Expense
Miscellaneous Selling Expense
Total Selling Expenses
General & Administrative Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense - Office Equipment
Office Supplies Expense
Miscellaneous Administrative Expense
Total Administrative Expense
Total Expenses
Net Income from Operations
Other Income
Rental Income
Total Income
Less:
Other Expenses
Interest Expense
Net Income
C
5,050.00
2,450.00
D
270,000.00
3,100.00
273,100.00
7,500.00
37,625.00
5,625.00
12,500.00
3,750.00
1,475.00
800.00
22,575.00
13,000.00
2,700.00
1,900.00
675.00
825.00
E
5,950.00
3,550.00
90,000.00
265,600.00
355,600.00
98,000.00
61,775.00
41,675.00
F
457,500.00
9,500.00
448,000.00
257,600.00
190,400.00
103,450.00
86,950.00
10,400.00
97,350.00
5,800.00
91,550.00
![Current Assets
Cash
Accounts Receivable
Less
Total Current Assets
Merchandise Inventory
Prepaid Insurance
Store Supplies
Office Supplies
Fixed Assets
Store Equipment
Less
Office Equipment
Less
Total Fixed Assets
Current Liabilities
Long Term Liabilities
Allowance for Uncollectible Accounts
Accounts Payable
Salaries Payable
Unearned Rent
Total Current Liabilities
Total Liabilities
G. Ramos Capital
Less:
Accumulated Depreciation
Long Term Loan
The Green Valley Merchandising
Balance Sheet
As of December 31,
Accumulated Depreciation
G. Ramos Drawing
ASSETS
Add:
Net Income
G. Ramos, Ending Capital
Total Liabilities & Owner's Equity
LIABILITIES
OWNER'S EQUITY
56,250.00
5,625.00
33,350.00
2,500.00
10,200.00
46,050.00
66,000.00
23,900.00 42,100.00
25,000.00
10,500.00
52,500.00
77,300.00
20,000.00
39,000.00
57,300.00
91,550.00
50,625.00
98,000.00
2,150.00
650.00
375.00
190,800.00
14,500.00
247,400.00
98,550.00
148,850.00
247,400.00
247,400.00
(98,550,00)
148,850.00
91,550.00
57,300.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab5a315-ac91-4016-9f01-63eee514f78d%2F7541dee4-ba45-4b6f-8c00-ed59d3ce8e18%2Fab8tyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Assets
Cash
Accounts Receivable
Less
Total Current Assets
Merchandise Inventory
Prepaid Insurance
Store Supplies
Office Supplies
Fixed Assets
Store Equipment
Less
Office Equipment
Less
Total Fixed Assets
Current Liabilities
Long Term Liabilities
Allowance for Uncollectible Accounts
Accounts Payable
Salaries Payable
Unearned Rent
Total Current Liabilities
Total Liabilities
G. Ramos Capital
Less:
Accumulated Depreciation
Long Term Loan
The Green Valley Merchandising
Balance Sheet
As of December 31,
Accumulated Depreciation
G. Ramos Drawing
ASSETS
Add:
Net Income
G. Ramos, Ending Capital
Total Liabilities & Owner's Equity
LIABILITIES
OWNER'S EQUITY
56,250.00
5,625.00
33,350.00
2,500.00
10,200.00
46,050.00
66,000.00
23,900.00 42,100.00
25,000.00
10,500.00
52,500.00
77,300.00
20,000.00
39,000.00
57,300.00
91,550.00
50,625.00
98,000.00
2,150.00
650.00
375.00
190,800.00
14,500.00
247,400.00
98,550.00
148,850.00
247,400.00
247,400.00
(98,550,00)
148,850.00
91,550.00
57,300.00
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