Assignment Instructions/ Description
Image transcription textProblem 2 (ACs3.1, 3.2 & 3.3)
WoodyTrain has the following income statement (turn page)
Income Statement
WoodyTrain
2017
INCOME
Sales
E
37,763.00
Cost of Goods
Beginning Inventory value
E
8,010.00
Manufacturing cost
E
19, 159.00
Less Ending Inventory value
8,793.00
Cost of Goods Sold
18,376.00
Gross Profit
E
19,387.00
Non-Operating Income
Interest Income
E
600.00
Total Non-Operating Income
f
600.00
Total INCOME
E 13,997.00
EXPENSES
Operating Expenses
Accounting and Legal
E
1,107.00
Advertising
E
900.00
Depreciation
E
1,202.00
Insurance
E
1,041.00
Maintenance and Repairs
E
923.00
Office Supplies
E
325.00
Rent
E
1,268.00
2... Show moreImage transcription textSalaries and Wages
E
925.00
Telephone & Broadband
118.00
Utilities
565.00
Web Hosting and Domains
165.00
Total Operating Expenses
8,539.00
Non-Recurring Expenses
Furniture and Equipment
1,052.00
Total Non-Recurring Expenses
1,052.00
Total EXPENSES
E 9,591.00
Net Income Before Taxes
4,075.00
Income Tax Expense
815.00
NET INCOME
E3,260.00
WoodyTrain
Statement of financial position at 31 Dec 2017
Assets
Current
Cash
E 1,704.00
Inventory
E 8.793.00
E 10,497.00
Non-current assets
Office Supplies
E 120.00
Office Equipment
E 3,785.00
Less: Accumulated depreciation
E 1.202.00
E 2,703.00
E 13.200.00
Equity
Owner Capital
E 6,000.00
Profits/loss
E 3,260.00
E 9,260.00
Liabilities
Current
Liabilities Short-term loan
E 1,940.00
Non-
Current
Liabilities
Long-term loans
E 2,000.00
Total Liabilities + Equity
E 13,200.00... Show moreImage transcription textInstructions
1. Using the usual ratio categories (Liquidity ratios, Solvency ratios and Profitability ratios),
classify the following ratios
Current Ratio
Acid-Test Ratio
Debt-Equity Ratio
Profit Margin
Return on Owners' Equity
2. Calculate the following ratios
Debt-Equity Ratio
Profit Margin
Return on Owners' Equity
3. Based on the information provided and your ratio, how would you describe the financial
performances of WoodyTrain?... Show more�