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Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3   2. Acid Test Ratio 5.1   3. Gross Profit Ratio 30%

Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3   2. Acid Test Ratio 5.1   3. Gross Profit Ratio 30%

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 14P: The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry...
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Ratio

Industry Ratios

GnG Ratios

1. Current Ratio

5.3

 

2. Acid Test Ratio

5.1

 

3. Gross Profit Ratio

30%

 

4. Net Income Margin

7.5%

 

5. Receivable Turnover Ratio

9

 

6. Return on Asset Ratio

12%

 

7. Debt to Asset Ratio

1:4

 

 

Interpretation and verbal analysis compared to industry ratios:

1. Liquidity

 

2. Profitability

 

3. Solvency

 

Computations:

GnG Mini Mart Statement of Finandial Position December 31 2021 2020 Assets Current Assets Cash & cash equivalents P 833,755 851,400 Trade & Other Receivables 61,515 55,500 Inventories 43,620 52,115 Prepaid Expenses 32,000 970,890 43,200 Total Current Assets P 1,002,215 Non Current Assets Property, Plant & Equipm ent 765,800 P 1,736,690 P 1,684,715 682,500 Total Assets Liabilities & Owner's Equity Current Liabilities Trade & other payables P 137,200 144,500 Non Current Liabilities Loans payable 100,000 237,200 150,000 Total Liabilities P P 294,500 Owner's Equity GnG, Capi tal Total Liabilities and Owner's Equity P 1,499,490 1,390,215 1,736,690 P 1,684,715
Transcribed Image Text:GnG Mini Mart Statement of Finandial Position December 31 2021 2020 Assets Current Assets Cash & cash equivalents P 833,755 851,400 Trade & Other Receivables 61,515 55,500 Inventories 43,620 52,115 Prepaid Expenses 32,000 970,890 43,200 Total Current Assets P 1,002,215 Non Current Assets Property, Plant & Equipm ent 765,800 P 1,736,690 P 1,684,715 682,500 Total Assets Liabilities & Owner's Equity Current Liabilities Trade & other payables P 137,200 144,500 Non Current Liabilities Loans payable 100,000 237,200 150,000 Total Liabilities P P 294,500 Owner's Equity GnG, Capi tal Total Liabilities and Owner's Equity P 1,499,490 1,390,215 1,736,690 P 1,684,715
Analyze the Financial Statements of GnG Mini Mart for 2021 only through different financial statement ratios. Compare your results to industry ratios indicated in the next page. Complete the analysis using the ratios provided. Show your computations. GnG Mini Mart Statement of Comprehensive Income For the years ended December 31 2021 2020 P 938,250 131,355 806,895 Sales P 1,042,500 Less: Sales Discounts 156,375 Net Sales P 886,125 Less: Cost of Goods Sold 468,200 417,925 420,900 385,995 Gross Profit Less: Operating Expenses 187,356 230,569 165,435 220,560 Net Income before Tax Less: Income Tax 69,171 66,168 Net Income after Tax P 161,398 154,392
Transcribed Image Text:Analyze the Financial Statements of GnG Mini Mart for 2021 only through different financial statement ratios. Compare your results to industry ratios indicated in the next page. Complete the analysis using the ratios provided. Show your computations. GnG Mini Mart Statement of Comprehensive Income For the years ended December 31 2021 2020 P 938,250 131,355 806,895 Sales P 1,042,500 Less: Sales Discounts 156,375 Net Sales P 886,125 Less: Cost of Goods Sold 468,200 417,925 420,900 385,995 Gross Profit Less: Operating Expenses 187,356 230,569 165,435 220,560 Net Income before Tax Less: Income Tax 69,171 66,168 Net Income after Tax P 161,398 154,392
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