Calculate the following ratiosa. Gross profit ration b.Net Profit ratioc. Current Ratiod. Liquid ratio. AL AHLIA INSURANCE COMPANY SAOGSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 31 December 202020202019NotesROROInsurance premium revenueInsurance premium ceded to reinsurers1921,272,026(3,166,494)24,881,67819(1,866,017)Net insurance premium revenueCommissions received on ceded reinsuranceClaimsReinsurers' share of claimsDeferred acquisition costCommissions paid1918,105,532194,326(13,214,261)6,687,417(134,160)(1,752,118)23,015,661128,795(14,690,883)3,114,57212,322(2,042,485)20208Net underwriting resultGeneral and administrative expensesInvestment income (net)Interest on lease liabilitiesOther income - net9,886,736(7,037,876)2,090,707(75,576)325,8499,537,982(6,308,228)1,726,244(80,746)1,203222133Profit before taxation5,189,8404,876,455Income tax23(800,000)(765,000)Profit and other comprehensive income for the year4,389,8404,111,455Basic and diluted earnings per share270.0440.041 AL AHLIA INSURANCE COMPANY SAOGSTATEMENT OF FINANCIAL POSITIONAt 31 December 20202020RO2019NotesROAssets2,332,73338,412,8765,883,3536,965,366440,5616,058,83470,74171,4292,407,8901,184,9961,186,634165,77615,448,5293,039,78840,712,8766,179,3786,693,579280,7654,604,46868,27871,4292,408,3511,149,8431,485,634148,83215,448,5295Cash and cash equivalentsBank depositsPremiums and insurance balances receivableReinsurers' share of outstanding claimsReinsurers' share of unearned premium reserveOther receivables and prepaymentsInvestments at fair value through profit or lossAvailable-for-sale investmentsHeld-to-maturity investmentsProperty and equipmentRight of use assetsDeferred tax asset6720178113323Goodwill12Total assets80,629,71882,291,750Equity and liabilitiesCapital and reservesShare capitalLegal reserveContingency reserve10,000,0003,909,42310,000,000113,87615,763,59110,000,0003,909,42310,000,000114,59615,473,031131415Revaluation reserve16Retained earningsTotal equity39,786,89039,497,050LiabilitiesLiabilities arising from insurance contractsGross unearned premium reserveGross outstanding claims10,774,72523,442,679178,588,70322,984,0392031,572,7421,092,1875,896,3801,122,3321,159,18734,217,404926,6464,125,5921,407,0422,118,016Reinsurance balances payableOther liabilities and accruals18Lease liabilities33Income tax payable23Total liabilities40,842,82842,794,700Total equity and liabilities80,629,71882,291,750Net assets per share260.3980.395

The accounting ratio is represented as a ratio that exactly is a comparison between two financial…

Answered: Calculate the following ratios a. Gross…

Business

Accounting

Calculate the following ratios a. Gross profit ration b.Net Profit ratio c. Current Ratio d. Liquid ratio.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14P: Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and...

See similar textbooks

Similar questions

Answer part C only The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…
The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on January 1, 2021. If the original payment was recorded as a prepaid asset, the balance in prepaid asset on December 31, 2022 would be a. lower than the balance on december 31, 2021b. lower than the balance on december 31, 2023c. the same as the balance on december 31, 2023d. the same as the original payment DISCUSS
Permanent adjustments on Schedule M-1 (Form 1065) include: Premiums paid for life insurance policies on key employees, lobbying expenses, and tax exempt interest. Start up costs, depletion, and inventory costs. Section 179 expensing, uniform capitalization adjustments, and expenses related to tax exempt income. Depreciation, amortization, and depletion.
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below:Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235 ---Prepare in good form a statement of retained earnings of Palm Realtors Ltd. for the year endedDecember 31, 2019. --Compute the current ratio for Palm Realtors Ltd for 2019. Did the company appear to be able to meetits short-term obligations as they come due? Why?
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below: Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235 Prepare in good form a classified statement of financial position for Palm Realtors Ltd as at December 31, 2019,
Queation 18 Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in…
The actuary for the pension plan of Buffalo Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $302,700 2021 476,700 2022 (209,000) 2023 (288,200) Other information about the company’s pension obligation and plan assets is as follows. As of January 1, Projected BenefitObligation Plan Assets(market-related asset value) 2020 $3,993,500 $2,394,800 2021 4,542,200 2,203,200 2022 4,952,900 2,575,400 2023 4,228,400 3,066,100 Buffalo Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.Compute the…
The following information pertains to Cherry City’s liability for claims and judgments:Current liability at January 1, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000Claims paid during 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 900,000Current liability at December 31, 2018 . . . . . . . . . . . . . . . . . . . .. . . . . 240,000Noncurrent liability at December 31, 2018 . . . . . . . . . . . . . . . .. . . . . 200,000What amount should Cherry report for 2018 claims and judgment expenditures?a. $1,140,000b. $940,000c. $840,000d. $900,000
Microsoft’s 2020 10-K includes the following information relevant to its available-for-sale investments in Note 17—Accumulated Other Comprehensive Income (Loss): Year Ended June 30, 2020 2019 2018 Balance, beginning of period $1,488 $(850) $1,825 Unrealized gains (losses), net of tax of $1,057, $616, and $(427) 3,987 2,331 (1,146) Reclassification adjustments for (gains) losses included in other income (expense), net 4 93 (2,309) Tax expense (benefit) included in provision for income taxes (1) (19) 738 Cumulative effect of accounting changes 0 (67) 42 Balance, end of period $5,478 $1,488 $(850) Answer the following questions by referring to the disclosure note above: Prepare a journal entry to record unrealized gains for 2020. (Hint: $3,987 is net of tax effects, so you will need to add back tax effects to show the amount of pretax unrealized gain.) Prepare a journal entry to record Microsoft’s reclassification…
Financial Statement Violations of U.S. GAAP The following are the financial statements issued by Allen Corporation for its fiscal year ended October 31, 2019: Notes to Financial Statements: 1. Long-Term Lease. Under the terms of a 5-year, noncancelable lease for a building, Allen is obligated to make annual rental payments of 40,000 in each of the next 4 fiscal years. 2. Pension Plan. Substai1tially all employees are covered by Allens defined benefit pension plan. Pension expense is equal to the total of pension benefits accrued and paid to retired employees during the year. Because it is a defined benefit plan that is paid every year, no pension liability exists. 3. Patent. The patent had an estimated remaining life of 10 years at the time of purchase. Allens patent was purchased from Apex Corporation on January 1, 2019, for 250,000. 4. Deferred Income Tax Payable. The entire balai1ce in the Deferred Income Tax Payable account arose from tax-exempt municipal bonds that were held during the previous fiscal year, giving rise to a difference between taxable income and reported net earnings for the fiscal year ended October 31, 2019. The deferred liability amount was calculated on the basis of past tax rates. 5. Warrants. On January 1, 2018, one common stock warrant was issued to shareholders of record for each common share owned. An additional share of common stock is to be issued upon exercise of 10 stock warrants and receipt of an amount equal to par value. For the 6 months ended October 31, 2019, the average market value for Allens common stock was 5 per share and no warrants had yet been exercised. 6. Contingent Liability. On October 31, 2019, Allen was contingently liable for product warranties in an amount estimated to aggregate 75,000. Required: Next Level Review the preceding financial state1nents and related notes. Identify any inclusions or exclusions from them that would be in violation of GAAP, and indicate corrective action to be taken. Do not comment as to format or style. Respond in the following order: 1. Balance sheet 2. Notes 3. Income statement 4. Statement of retained earnings 5. General
Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.
CHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 loss