Question 3Footfall Manufacturing Ltd. reports the following financial information at the end of the currentyear:Net Sales$100,000Debtor's turnover ratio (based on net sales)Inventory turnover ratio1.25Fixed assets turnover ratio0.8Debt to assets ratio|Net profit marginGross profit marginReturn on investment0.65%25%2%Use the given information to fill out the templates for income statement and balance sheet givenbelow:Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX(in $)Sales100,000Cost of goods soldGross profitOther expensesEarnings before taxТах @ 50%Earnings after taxBalance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $)LiabilitiesEquityLong term debtAmountAssetsAmountNet fixed assets50,000InventoryDebtorsCashShort term debtТОTALТОTALQuestion 3Waterfront Inc. wishes to borrow on a short-term basis without reducing its current ratio below1.25. At present its current assets and current liablities are $1,600 and $1,000 respectively.How much can Waterfront Inc. borrow?

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Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net Sales Debtor's turnover ratio (based on net sales) 2 Inventory turnover ratio Fixed assets turnover ratio Debt to assets ratio $100,000 1.25 0.8 0.6 Net profit margin Gross profit margin Return on investment 5% 25% 2% Use the given information to fill out the templates for income statement and balance sheet given below: Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX (in S) Sales Cost of goods sold |Gross profit Other expenses Earnings before tax Таx (@ 50% Earnings after tax 100,000 Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in S) Liabilities Equity Long term debt Amount Assets Net fixed assets Amount 50,000 Inventory Short term debt Debtors Cash ТОTAL ТОTAL

Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net Sales Debtor's turnover ratio (based on net sales) 2 Inventory turnover ratio Fixed assets turnover ratio Debt to assets ratio $100,000 1.25 0.8 0.6 Net profit margin Gross profit margin Return on investment 5% 25% 2% Use the given information to fill out the templates for income statement and balance sheet given below: Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX (in S) Sales Cost of goods sold |Gross profit Other expenses Earnings before tax Таx (@ 50% Earnings after tax 100,000 Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in S) Liabilities Equity Long term debt Amount Assets Net fixed assets Amount 50,000 Inventory Short term debt Debtors Cash ТОTAL ТОTAL

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

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

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

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.1EX: Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two...

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