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What was the gross margin for Halal Cosmetics as at Dec 31, 2015?

What was the gross margin for Halal Cosmetics as at Dec 31, 2015?

FINANCIAL ACCOUNTING
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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What was the gross margin for Halal Cosmetics as at Dec 31, 2015? Formulae for Financial Ratio Analysis SEME Current Ratio = Current Asset / Current Liabilities • Quick Ratio = Quick Assets / Current Liabilities • Working Capital Current Asset - Current Liabilities • Gross Profit Margin (Expressed as %) = Gross Sales / Sales • Profit Margin (Expressed as %) = Net Income / Sales • Average Collection Period (# Days) = (Accounts Receivables *365) / Credit Sales • Average Inventory Period (# Days) = (Average Inventory* 365) / Cost of Goods Sold Average Inventory = (Beginning Inventory + Ending Inventory)/2 • Debt to Equity= Total Liabilities/ Shareholders' Equity ASSETS Cash Accounts Receivables Inventory Fixed Assets $20,000 Accounts Payable 10,000 Charge Card (Note 1) 55,000 Shareholder's Equity 100,000 $185,000 Note 1: A charge card, unlike a credit card, must be paid in full each month. Total Assets HALAL COSMETICS LTD BALANCE SHEET AS AT DEC 31, 2015 LIABILITIES Total Liabilities & Shareholders' Equity $20,000 5,000 160,000 $185,000
Transcribed Image Text:What was the gross margin for Halal Cosmetics as at Dec 31, 2015? Formulae for Financial Ratio Analysis SEME Current Ratio = Current Asset / Current Liabilities • Quick Ratio = Quick Assets / Current Liabilities • Working Capital Current Asset - Current Liabilities • Gross Profit Margin (Expressed as %) = Gross Sales / Sales • Profit Margin (Expressed as %) = Net Income / Sales • Average Collection Period (# Days) = (Accounts Receivables *365) / Credit Sales • Average Inventory Period (# Days) = (Average Inventory* 365) / Cost of Goods Sold Average Inventory = (Beginning Inventory + Ending Inventory)/2 • Debt to Equity= Total Liabilities/ Shareholders' Equity ASSETS Cash Accounts Receivables Inventory Fixed Assets $20,000 Accounts Payable 10,000 Charge Card (Note 1) 55,000 Shareholder's Equity 100,000 $185,000 Note 1: A charge card, unlike a credit card, must be paid in full each month. Total Assets HALAL COSMETICS LTD BALANCE SHEET AS AT DEC 31, 2015 LIABILITIES Total Liabilities & Shareholders' Equity $20,000 5,000 160,000 $185,000
00 Sales Cost of Goods Sold Gross Profit Operating Expenses Net Profit** Before income tax $200,000 23.6% $350,000 41.7% HALAL COSMETICS LTD INCOME STATEMENT AS AT DEC 31, 2015 $850,000 500,000 350,000 150,000 $200,000
Transcribed Image Text:00 Sales Cost of Goods Sold Gross Profit Operating Expenses Net Profit** Before income tax $200,000 23.6% $350,000 41.7% HALAL COSMETICS LTD INCOME STATEMENT AS AT DEC 31, 2015 $850,000 500,000 350,000 150,000 $200,000
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