Requested: 1. The common size analysis (vertical analysis) for the above financial statements (balance sheet, income statement) of the company 'ODK Commercial'. 2. If the gross profit margin is 15% and the general liquidity is 3% of the sector where the company 'ODK Emporiki' belongs, calculate and comment on the corresponding ratios of the company in relation to those of the sector. Can there be an interaction between these two indicators?

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
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 4C
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For the company 'ODK Emporiki' the following is given its Balance Sheet and
Income Statement :
Assets
Plots
Buildings
Machinery
Stocks
Customers
Cash and cash equivalents
Total assets
Liability
Chapter
Reserves
Balance
sheet
Long-term loans
Suppliers
Accounts payable
Total Liabilities
Profit and loss statement
Net sales
Cost of Sales
Gross Profit
Administrative expenses
Disposal costs
Other costs and losses
Net profit
150.000
320.000
120.000
95.000
75.000
60.000
820.000
300.000
135.000
210.000
145.000
30.000
820.000
875.000
650.000
225.000
45.000
85.000
30.000
65.000
Requested:
1. The common size analysis (vertical analysis) for the above financial statements
(balance sheet, income statement) of the company 'ODK Commercial'.
2. If the gross profit margin is 15% and the general liquidity is3% of the sector
where the company 'ODK Emporiki' belongs, calculate and comment on the
corresponding ratios of the company in relation to those of the sector. Can there
be an interaction between these two indicators?
Transcribed Image Text:For the company 'ODK Emporiki' the following is given its Balance Sheet and Income Statement : Assets Plots Buildings Machinery Stocks Customers Cash and cash equivalents Total assets Liability Chapter Reserves Balance sheet Long-term loans Suppliers Accounts payable Total Liabilities Profit and loss statement Net sales Cost of Sales Gross Profit Administrative expenses Disposal costs Other costs and losses Net profit 150.000 320.000 120.000 95.000 75.000 60.000 820.000 300.000 135.000 210.000 145.000 30.000 820.000 875.000 650.000 225.000 45.000 85.000 30.000 65.000 Requested: 1. The common size analysis (vertical analysis) for the above financial statements (balance sheet, income statement) of the company 'ODK Commercial'. 2. If the gross profit margin is 15% and the general liquidity is3% of the sector where the company 'ODK Emporiki' belongs, calculate and comment on the corresponding ratios of the company in relation to those of the sector. Can there be an interaction between these two indicators?
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