Manage Financial Operation of Sushi Bar

An organization’s current ratio shows how liquid the assets of the agency are by comparison to the short term debts that the agency must pay to continue its operations. This ratio is calculated by taking the assets that can be converted to cash within a year (current assets) and dividing it by the liabilities that are either currently due or will become due within a year (current liabilities). The current ratio, ideally, should be at

Account/Description Manufacturing overhead Cost of goods sold Actual overhead costs Incurred on account Indirect materials Indirect labor Depreciation $120,000 14,000 20,000 8,000 $162,000 Applied overhead costs Job 7640 Job 7641 Job 7642 $43,200 57,600 66,000 $166,800 $162,000 166,800 $4,800

Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage REVENUE 40000 Sales 246,172,918.44 102.33% 245,213,452.88 106.40% -959,465.56 -0.39% 41000 Sales Returns 4,497,583.20 1.87% 13,600,220.89 5.90% 9,102,637.69 202.39% 42000 Warranty Exp 1,100,281.48 0.46% 1,158,128.47 0.50% 57,846.99 5.26% Net Sales 240,575,053.76 100.00% 230,455,103.52 100.00% (10,119,950.24) -4.21% EXPENSES 50000 COGS 141,569,221.61 58.85% 130,246,645.26 56.52% (11,322,576.35) -8.00% Gross Margin 99,005,832.15 41.15% 100,208,458.26 43.48% 1,202,626.11 1.21% GA-7.4

|Ratio |Numbers from Arcadia financial |Result |Is it a liquidity, |Define the ratio and explain what the result shown in Column 3 means to the organization. Do not forget to |

This ratio takes into consideration the current assets and current liabilities from the balance sheet

• Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving

To find the current ratio you need to look on the company’s balance sheet. You take the current total assets and divide by the total current liabilities. This gives you your current

Current Liabilities = $940,000 $200,000 = 4.7 (2) Quick ratio = Cash + Cash Equivalents + Short Term Investment + Current Receivables Current Liabilities = $500,000 + $350,000 $200,000 = 4.25 (3) Debt-to-total assets ratio = Total Debt Total Assets = $1,000,000 $ 2,375,000

Explanations: 5. b. Gross profit = $2,505 (Sales revenue $4,319 – Cost of goods sold $1,814)

Calculate cost of goods sold for the year. (Omit the "$" sign in your response.)

14 1.2.2 Debt ratio .................................................................................................................................... 15 1.2.3 Quick ratio................................................................................................................................... 16 1.3 Solvency ............................................................................................................................................... 17 1.3.1 Debt-equity ratio ...................................................................................................................... 17 1.3.2 Interest cover ratio .................................................................................................................. 18 1.4 Conclusion ........................................................................................................................................... 19 Economic ......................................................................................................................................................... 20 2.1 Labor Market ...................................................................................................................................... 20 2.1.1 Employment and Unemployment ...................................................................................... 20 2.1.2 Nominal and Real Hourly Wages

|Table 2 |Quick |Current Ratio|Accounts collection period of accounts |Average number of days inventory |

PPL’s current ratio has decreased from 1.42:1 in 2010 to 1.28:1 in 2011. This can be attributed to the largely increase in current liabilities by 25%, from NZ$74min 2010 to NZ$93m in 2011, as well as the increase in current assets by 13.2%, from NZ$105m in 2010 to NZ$119m in 2011

Please see table A & B in the supplementary section for a complete chart of all financial ratios and calculations:

Current Ratio is the relationship between a company’s current assets and current liabilities. This form of liquidity ratio also shows if the company can pay its current liabilities. A company’s current ratio can be formulated by dividing the current assets by the current liabilities. In 2016, Starbucks had a ratio of 1.05, which shows that the company has 5% cash and assets that could cover all current liabilities, thus it should not have any problems paying its current liabilities.