Requested: 1. The common size analysis (vertical analysis) for the above financial statements (balance sheet, income statement) of the company 'ODK Commercial'. 2. If the gross profit margin is 15% and the general liquidity is 3% of the sector where the company 'ODK Emporiki' belongs, calculate and comment on the corresponding ratios of the company in relation to those of the sector. Can there be an interaction between these two indicators?
Requested: 1. The common size analysis (vertical analysis) for the above financial statements (balance sheet, income statement) of the company 'ODK Commercial'. 2. If the gross profit margin is 15% and the general liquidity is 3% of the sector where the company 'ODK Emporiki' belongs, calculate and comment on the corresponding ratios of the company in relation to those of the sector. Can there be an interaction between these two indicators?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![For the company 'ODK Emporiki' the following is given its Balance Sheet and
Income Statement :
Assets
Plots
Buildings
Machinery
Stocks
Customers
Cash and cash equivalents
Total assets
Liability
Chapter
Reserves
Balance
sheet
Long-term loans
Suppliers
Accounts payable
Total Liabilities
Profit and loss statement
Net sales
Cost of Sales
Gross Profit
Administrative expenses
Disposal costs
Other costs and losses
Net profit
150.000
320.000
120.000
95.000
75.000
60.000
820.000
300.000
135.000
210.000
145.000
30.000
820.000
875.000
650.000
225.000
45.000
85.000
30.000
65.000
Requested:
1. The common size analysis (vertical analysis) for the above financial statements
(balance sheet, income statement) of the company 'ODK Commercial'.
2. If the gross profit margin is 15% and the general liquidity is3% of the sector
where the company 'ODK Emporiki' belongs, calculate and comment on the
corresponding ratios of the company in relation to those of the sector. Can there
be an interaction between these two indicators?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fafe8d413-f5e1-4b66-bf10-ec5744ccc4b0%2F7a3c7c95-5494-4f05-9ac7-e6a5e6358b77%2Ffqhncfn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For the company 'ODK Emporiki' the following is given its Balance Sheet and
Income Statement :
Assets
Plots
Buildings
Machinery
Stocks
Customers
Cash and cash equivalents
Total assets
Liability
Chapter
Reserves
Balance
sheet
Long-term loans
Suppliers
Accounts payable
Total Liabilities
Profit and loss statement
Net sales
Cost of Sales
Gross Profit
Administrative expenses
Disposal costs
Other costs and losses
Net profit
150.000
320.000
120.000
95.000
75.000
60.000
820.000
300.000
135.000
210.000
145.000
30.000
820.000
875.000
650.000
225.000
45.000
85.000
30.000
65.000
Requested:
1. The common size analysis (vertical analysis) for the above financial statements
(balance sheet, income statement) of the company 'ODK Commercial'.
2. If the gross profit margin is 15% and the general liquidity is3% of the sector
where the company 'ODK Emporiki' belongs, calculate and comment on the
corresponding ratios of the company in relation to those of the sector. Can there
be an interaction between these two indicators?
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