Compare and contrast the company’s performance for the years 2019 and 2020 MN1 Particulars2 Revenue3 Cost of sales4 Gross profit5 Net profit6 Cash at bank7 Inventory8 Trade receivables9 Current assets10 Trade payable11 Current liabilities2019975,0002020950,000455,000495,000175,00045,00022,000460,000515,000205,00055,00020,00015,00082,00040,00040,00010,00085,00030,00030,0001213 (i) Gross profit margin14 (ii) Net profit margin15 (iii) Current ratio52.11%52.82%18.42%21.03%2.8332.1673.7423.8015.872.05016 (iv) Quick ratio17 (v) Trade receivable days18 (vi) Trade payable days19 (vii) Inventory turnover days1.5005.7632.0917.65

1 Particulars 2 Revenue 3 Cost of sales 4 Gross profit s Net profit 6 Cash at bank 7 Inventory 8 Trade receivables 9 Current assets 10 Trade payable 11 Current liabilities 2020 950,000 455,000 495,000 175,000 45,000 22,000 15,000 82,000 40,000 40,000 2019 975,000 460,000 515,000 205,000 55,000 20,000 10,000 85,000 30,000 30,000 12 13 (i) Gross profit margin 14 (ii) Net profit margin 15 (iii) Current ratio 16 (iv) Quick ratio 17 (v) Trade receivable days 18 (vi) Trade payable days 19 (vii) Inventory turnover days 52.11%| 18.42% 2.050 1.500 5.76 32.09 17.65 52.82% 21.03% 2.833 2.167 3.74 23.80 15.87

1 Particulars 2 Revenue 3 Cost of sales 4 Gross profit s Net profit 6 Cash at bank 7 Inventory 8 Trade receivables 9 Current assets 10 Trade payable 11 Current liabilities 2020 950,000 455,000 495,000 175,000 45,000 22,000 15,000 82,000 40,000 40,000 2019 975,000 460,000 515,000 205,000 55,000 20,000 10,000 85,000 30,000 30,000 12 13 (i) Gross profit margin 14 (ii) Net profit margin 15 (iii) Current ratio 16 (iv) Quick ratio 17 (v) Trade receivable days 18 (vi) Trade payable days 19 (vii) Inventory turnover days 52.11%| 18.42% 2.050 1.500 5.76 32.09 17.65 52.82% 21.03% 2.833 2.167 3.74 23.80 15.87

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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A2 1ai Use the following information for Delta Corporation : Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a…
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