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Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity: 1. Profitability Ratios a) Gross Profit Margin b) Return on Equity c) Return on Assets 2. Leverage Ratio a) Debt-to-Equity 3. Liquidity Ratios a) Current Ratio b) Quick-Asset Ratio

Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity: 1. Profitability Ratios a) Gross Profit Margin b) Return on Equity c) Return on Assets 2. Leverage Ratio a) Debt-to-Equity 3. Liquidity Ratios a) Current Ratio b) Quick-Asset Ratio

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Read and understand the financial statements of Green Valley Merchandising, Compute for the following ratios of the said business entity: 1. Profitability Ratios a) Gross Profit Margin b) Return on Equity c) Return on Assets 2. Leverage Ratio a) Debt-to-Equity 3. Liquidity Ratios a) Current Ratio b) Quick-Asset Ratio
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 के मे दी है। 40 41 42 44 45 46 47 48 A Gross Sales Less: Net Sales Less: Add: Sales Returns & Allowances Sales Discount Cost of Goods Sold Beginning Inventory - January 1 Purchases Gross Profit Less: Add: Freight In Total Less: Purchase Return & Allowances Purchase Discount B Net Purchases Total Goods Available for Sale Less: Ending Inventory Cost of Goods Sold Operating Expenses Selling Expenses Sales Salaries Expense The Green Valley Merchandising Income Statement For the Year Ended December 31, Uncollectible Accounts Expense Advertising Expense Depreciation Expense - Store Equipment Store Supplies Expense Miscellaneous Selling Expense Total Selling Expenses General & Administrative Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense - Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Total Administrative Expense Total Expenses Net Income from Operations Other Income Rental Income Total Income Less: Other Expenses Interest Expense Net Income C 5,050.00 2,450.00 D 270,000.00 3,100.00 273,100.00 7,500.00 37,625.00 5,625.00 12,500.00 3,750.00 1,475.00 800.00 22,575.00 13,000.00 2,700.00 1,900.00 675.00 825.00 E 5,950.00 3,550.00 90,000.00 265,600.00 355,600.00 98,000.00 61,775.00 41,675.00 F 457,500.00 9,500.00 448,000.00 257,600.00 190,400.00 103,450.00 86,950.00 10,400.00 97,350.00 5,800.00 91,550.00
Transcribed Image Text:1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 के मे दी है। 40 41 42 44 45 46 47 48 A Gross Sales Less: Net Sales Less: Add: Sales Returns & Allowances Sales Discount Cost of Goods Sold Beginning Inventory - January 1 Purchases Gross Profit Less: Add: Freight In Total Less: Purchase Return & Allowances Purchase Discount B Net Purchases Total Goods Available for Sale Less: Ending Inventory Cost of Goods Sold Operating Expenses Selling Expenses Sales Salaries Expense The Green Valley Merchandising Income Statement For the Year Ended December 31, Uncollectible Accounts Expense Advertising Expense Depreciation Expense - Store Equipment Store Supplies Expense Miscellaneous Selling Expense Total Selling Expenses General & Administrative Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense - Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Total Administrative Expense Total Expenses Net Income from Operations Other Income Rental Income Total Income Less: Other Expenses Interest Expense Net Income C 5,050.00 2,450.00 D 270,000.00 3,100.00 273,100.00 7,500.00 37,625.00 5,625.00 12,500.00 3,750.00 1,475.00 800.00 22,575.00 13,000.00 2,700.00 1,900.00 675.00 825.00 E 5,950.00 3,550.00 90,000.00 265,600.00 355,600.00 98,000.00 61,775.00 41,675.00 F 457,500.00 9,500.00 448,000.00 257,600.00 190,400.00 103,450.00 86,950.00 10,400.00 97,350.00 5,800.00 91,550.00
Current Assets Cash Accounts Receivable Less Total Current Assets Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Fixed Assets Store Equipment Less Office Equipment Less Total Fixed Assets Current Liabilities Long Term Liabilities Allowance for Uncollectible Accounts Accounts Payable Salaries Payable Unearned Rent Total Current Liabilities Total Liabilities G. Ramos Capital Less: Accumulated Depreciation Long Term Loan The Green Valley Merchandising Balance Sheet As of December 31, Accumulated Depreciation G. Ramos Drawing ASSETS Add: Net Income G. Ramos, Ending Capital Total Liabilities & Owner's Equity LIABILITIES OWNER'S EQUITY 56,250.00 5,625.00 33,350.00 2,500.00 10,200.00 46,050.00 66,000.00 23,900.00 42,100.00 25,000.00 10,500.00 52,500.00 77,300.00 20,000.00 39,000.00 57,300.00 91,550.00 50,625.00 98,000.00 2,150.00 650.00 375.00 190,800.00 14,500.00 247,400.00 98,550.00 148,850.00 247,400.00 247,400.00 (98,550,00) 148,850.00 91,550.00 57,300.00
Transcribed Image Text:Current Assets Cash Accounts Receivable Less Total Current Assets Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Fixed Assets Store Equipment Less Office Equipment Less Total Fixed Assets Current Liabilities Long Term Liabilities Allowance for Uncollectible Accounts Accounts Payable Salaries Payable Unearned Rent Total Current Liabilities Total Liabilities G. Ramos Capital Less: Accumulated Depreciation Long Term Loan The Green Valley Merchandising Balance Sheet As of December 31, Accumulated Depreciation G. Ramos Drawing ASSETS Add: Net Income G. Ramos, Ending Capital Total Liabilities & Owner's Equity LIABILITIES OWNER'S EQUITY 56,250.00 5,625.00 33,350.00 2,500.00 10,200.00 46,050.00 66,000.00 23,900.00 42,100.00 25,000.00 10,500.00 52,500.00 77,300.00 20,000.00 39,000.00 57,300.00 91,550.00 50,625.00 98,000.00 2,150.00 650.00 375.00 190,800.00 14,500.00 247,400.00 98,550.00 148,850.00 247,400.00 247,400.00 (98,550,00) 148,850.00 91,550.00 57,300.00
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