a) Compute the above indicated ratios for DEL Bhd.b) Evaluate the overall performance of the company as compared to the industry average ratios. Below are the financial statementsfor DEL Bhd. for year of 2018.DEL Bhd.Balance Sheet As Al 31 December 2018 (RMO0)2400 Account payatle600 Nates payabie20.000 Acerued expenses6.0004.8007,200CashMartetatie securtiesAccount recelvables24.000600 MortgageTerm LoanInventoriesPrepaid expenses12.5008.800Piant and equipment29.0004.200(14.400) Common sharesRetained eamingsAccumulated depreciation16.400TOTAL ASSETSTOTAL LIABILITIESAEQUITY62,00062,000DEL Bhd.Income StutomentFor The Year Ended 31 December 2018 (RMU00)Net Sales102.000176.000)26.000Cost of goods soldGross profitOperating expensesNet operating incomeinterest expensesEamings before tasesL18.0008,0002.002)4.00024003.600Income taxesEARNINGS AFTER TAXESIndustry Average RatiosCurent ratioQuick ratioDebt ratioTime interest earmed2.55 x Inventory turnover1.70 x Average collection period70% Net profit margin2.5x Retum on equity3.6x63 days4.5%19.5%

Ratio means financial ratio or accounting ratio which is a mathematical expression of the…

Answered: a) Compute the above indicated ratios…

a) Compute the above indicated ratios for DEL Bhd. b) Evaluate the overall performance of the company as compared to the industry average ratios.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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