Handmade Bags Ltd

$
Accounts Payable 47,000
Accounts Receivable 28,000
Opening Owners Equity 439,000
Cash 74,000
Cost of Goods Sold 151,000
Fuel Expenses 12,000
Accumulated Depreciation on Building 225,000
Inventory 81,000
Short Term Loan Payable 10,000
Interest Expense 4,000
Other Income 26,000
Marketing Costs 19,000
Plant and Equipment 112,000
Retained Earnings 93,000
Short Term Investment 71,000
Credit Sales (Revenues) 381,000
Cash Sales (Revenues) 75,000
Factory Workers' Wages expense 47,000
CEO Salary 161,000
Property Rates Expense 13,000
Building (Cost) 432,000
Factory Machinery 251,000
Delivery Van 28,000
Long Term Debt 236,000
Dividends Paid 48,000
Credit Sales (Revenue) 381,000
Cash Sales (Revenue) 75,000
Cost of goods sold -151,000
Gross profit 305,000

Other Income 26,000

Less expenses

Fuel expenses -12,000

Interest expense -4,000
Marketing Costs -19,000
Property Rates Expense -13,000
Factory Workers' Wages expense -47,000
CEO Salary -161,000
-256,000

Net profit 75,000

Hand Made Bags Ltd

Balance Sheet
As at 31 March 2019

Current Assets Current Liabilities

Accounts receivable 28,000
Cash at Bank 74,000 Accounts payable 47,000
Inventory 81,000 Short Term Loan Payable 10,000
Short Term Investment 71,000
254,000 Non-Current Liabilities
Long Term Debt 236,000
Non Current Assets
Total Liabilities 293,000
Building (Cost) 432,000
less Accumulated Depn -225,000
Plant and Equipment 112,000 Owners' Equity
Factory Machinery 251,000 Opening Owners' equity 439,000
Delivery Van 28,000 Dividends Paid -48,000
598,000 Retained Earnings 93,000
This Year's Net Profit 75,000

Total Owners' Equity 559,000

Total Assets 852,000 Total Liab and Owners' Equity 852,000

Ratios

1. Receivables Turnover Ratio = Credit Sales / Acc Rec

= 381/000 / 28,000 = 13.61

2. Gross Profit Margin Ratio = Gross Profit / Sales =

= 305/000 / 456,000 = 0.6689 or 66.89%

3. Return on Equity Ratio = Net Profit / Owners’ Equity

= 75,000 / 559,000 = 0.1342 or 13.42%

4. Payout Ratio = Dividends / Net Profit

= 48,000 / 75,000 = 0.64 or 64%

5. Acid - Test Ratio = Cash + Short Term Investments + Receivables / Current Liab

= 74,000 + 71,000 + 28,000 / 57,000

= 3.035

6. Debt - Assets Ratio = Total Debt / Total Assets

= 236,000 + 10,000 / 852,000

= 0.2887 or 28.87%
s / Current Liab