Please answer asap :) What was the gross margin for Halal Cosmetics as at Dec 31, 2015?Formulae for Financial Ratio AnalysisSEMECurrent Ratio = Current Asset / Current Liabilities• Quick Ratio = Quick Assets / Current Liabilities• Working Capital Current Asset - Current Liabilities• Gross Profit Margin (Expressed as %) = Gross Sales / Sales• Profit Margin (Expressed as %) = Net Income / Sales• Average Collection Period (# Days) = (Accounts Receivables *365) / Credit Sales• Average Inventory Period (# Days) = (Average Inventory* 365) / Cost of Goods SoldAverage Inventory = (Beginning Inventory + Ending Inventory)/2• Debt to Equity= Total Liabilities/ Shareholders' EquityASSETSCashAccounts ReceivablesInventoryFixed Assets$20,000 Accounts Payable10,000 Charge Card (Note 1)55,000Shareholder's Equity100,000$185,000Note 1: A charge card, unlike a credit card, must be paid in full each month.Total AssetsHALAL COSMETICS LTDBALANCE SHEETAS AT DEC 31, 2015LIABILITIESTotal Liabilities & Shareholders' Equity$20,0005,000160,000$185,000 00SalesCost of Goods SoldGross ProfitOperating ExpensesNet Profit**Before income tax$200,00023.6%$350,00041.7%HALAL COSMETICS LTDINCOME STATEMENTAS AT DEC 31, 2015$850,000500,000350,000150,000$200,000

Gross margin is also referred to as gross profit. Gross margin is described both in absolute terms…

Answered: What was the gross margin for Halal…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 19E

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