Please answer ASAPUsing the information provided in the picture, complete the calculation of accounting ratios andpercentages and comment briefly on the performance of the company for the twoyears. As audit manager, you are conducting a preliminary analytical review and associated riskanalysis for this client for the year ended June 30 2019. You have been presented with thefollowing draft financial information about Analita with incomplete ratios and percentagescalculation.RevenueCost of salesGross ProfitDistribution costsAdministrative expensesSelling expensesProfit from operationsNet interest receivableProfit before taxIncome tax expenseNet profitRetained profitsDividends paidINCOME STATEMENTAccounting ratios and percentagesEarnings per sharePerformance ratios include the following:Gross margin ((Gross profit/revenue)Expenses as a percentage of revenue:Distribution costsAdministrative expensesSelling expensesOperating profit as a percentage of revenueYear ended June 302019$'00018,4065,60912,7973,59811644,4423,59312454,8382,2092,6291,327$1,302,0000.54?????2018$'00016,5295,05711,4722,8961,9984746,1044956,5991,8524,7473,777$970,0001-25?????

Ratio analysis is the method of analysis of the financial statements of the entity which analyzes…

Answered: Using the information provided in the…

Using the information provided in the picture, complete the calculation of accounting ratios and percentages and comment briefly on the performance of the company for the two years.

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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