Answer:
a. current ratio = 1.98
b. average collection period = 32.85 days
c. debt ratio = 35,56%
d. total asset turnover ratio = 1.11 times
e. operating profit margin = 47,50%
f. inventory turnover ratio = 2 times
Explanation:
a. current ratio
Current ratio = Current Assets / Current Liabilities
= 3,075,000 / 1,550,000
= 1.98
b. average collection period.
Average collection period = Accounts Receivable / (Sales / 365)
= 900,000 / (10,000,000 / 365)
= 32.85 days
c. debt ratio.
Debt ratio = Interest bearing debt / Total Assets × 100
= (700,000+2,500,000)/ 9,000,000 × 100
= 35,56%
d. total asset turnover ratio.
Total asset turnover ratio = Sales / Total Assets
= 10,000,000 / 9,000,000
= 1.11 times
e. operating profit margin
Operating profit margin = Operating Profit / Sales × 100
= (4,550,000+200,000) / 10,000,000 × 100
= 47,50%
f. inventory turnover ratio
Inventory turnover ratio = Cost of Sales / Inventory
= 3,000,000 / 1,500,000
= 2 times
