LO3-answersheetcopyrami.xlsx
Sheet2
| Omega Bookshop |
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| Omega company |
| Income Statement-comparative statements |
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| Financial position- Years ended December 31,2021 and 2022 |
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| December 31.2021 |
December 31.2022 |
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| Item |
2021 |
2022 |
| Ratio |
2021 |
2022 |
Ratio interpretation |
Compare (2021&2022) |
Interpretation |
| Net Sales (50% credit) |
3640 |
4990 |
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| Assets |
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| Liquidity |
| Cost of goods sold |
-1920 |
-2640 |
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| Current Assets |
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| net working capital |
| Gross profit |
1720 |
2350 |
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| Cash & Cash equivalent |
50 |
72 |
| current ratio |
| Operating expenses (OPEX): |
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| Accounts Receivable |
180 |
190 |
| Quick ratio |
| Salaries and wages expenses |
900 |
1150 |
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| Merchandising inventory |
250 |
320 |
| cash ratio |
| Supplies expenses |
200 |
300 |
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| Prepaid expense’s |
10 |
18 |
| Profitability Ratio |
| Rent expenses |
300 |
400 |
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| Total current Assets |
490 |
600 |
| Utilities expenses |
200 |
300 |
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| Long term investment |
200 |
180 |
| Net Profit Margin |
| Total operating expenses |
-1600 |
-2150 |
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| Property plant & equipment (PP&E) |
900 |
1004 |
| Gross Margin Ratio |
| Income before interest and tax |
120 |
200 |
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| Total Assets |
1590 |
1784 |
| Efficiency |
| Interest expenses |
-20 |
-40 |
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| Liabilities |
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| Accounts Receivable Turnover Ratio |
| Income before tax |
100 |
160 |
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| Accounts payable |
90 |
235 |
| Accounts Receivable Days |
| Tax (25%) |
-25 |
-40 |
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| salaries payable |
25 |
30 |
| Inventory Turnover Ratio |
| Net Income (Net loss) |
75 |
120 |
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| Tax payable |
25 |
35 |
| Inventory Turnover Days |
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| Total current liabilities |
140 |
300 |
| investment ratios |
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| Long term Liabilities |
250 |
250 |
| Earnings per share |
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| Total liabilities |
390 |
550 |
| price-to-earnings (P/E) ratio |
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| Stockholders’ Equity |
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| Common stock |
900 |
1050 |
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| Retained earning |
300 |
184 |
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| Total stockholders’ Equity |
1200 |
1234 |
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| Total Equity & Liabilities |
1590 |
1784 |
Sheet3
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| 2021 |
2022 |
Industry Average |
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| Current ratio |
1.2 |
1.1 |
2 |
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| Quick ratio |
0.76 |
0.8 |
1.25 |
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| Inventory turnover |
0.8 |
0.7 |
1.6 |
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| average collection period |
98 |
87 |
64 |
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| Profit margin |
1.50% |
2.10% |
5.20% |
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| Return on assets |
4.50% |
6.50% |
1.10% |
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| Return on equity |
6.40% |
90% |
2.60% |
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| 2021 |
2022 |
Year to year comparison |
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| Current ratio |
1.2 |
1.1 |
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| Interpretation |
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| Acid ratio |
0.76 |
0.8 |
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| Interpretation |
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| Inventory turnover |
0.8 |
0.7 |
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| Interpretation |
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| Average collection period |
98 |
87 |
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| Interpretation |
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| Profit margin |
1.50% |
2.10% |
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| Interpretation |
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| Return on assets |
4.50% |
6.50% |
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| Interpretation |
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| Return on equity |
6.40% |
90% |
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| Interpretation |
zaid88
2 years ago
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