Rainbow Trading

Statement of Financial Position

As of December 31, 2017
2017 2018
Assets
Current Assets
Cash 58,000.00 64,000.00
Trade Receivables 228,000.00 170,000.00
Merchandise Inventory 226,000.00 222,000.00
Prepaid Expenses 12,000.00 16,000.00
Total Current Assets 524,000.00 472,000.00
Property, Plant, and Equipment (net) 1,050,000.00 816,000.00
Total Assets 1,574,000.00 1,288,000.00

Liabilities and Owner's Equity

Current Liabilities
Trade Payables 284,000.00 252,000.00
Non-Current Liabilities
Loan Payables 578,000.00 396,000.00
Total Liabilities 862,000.00 648,000.00
Owner's Equity 712,000.00 640,000.00
Total Liabilities and Owner's Equity 1,574,000.00 1,288,000.00

Required: Compute the following ratios for 2017:

Current Ratio
Quick Ratio
Receivable Turnover
Average Collection Period
Inventory Turnover
Average Sales Period
Working Capital
Debt Ratio
Equity Ratio
Debt to Equity Ratio
Times Interest Earned
Gross Profit Ratio
Operating Profit Margin
Net Profit Margin
Return on Assets
 Rainbow Trading
Income Statement
For the year ended December 31, 2017

Net Sales 1,716,000.00

Less: Cost of good sold 1,026,000.00
Gross Profit 690,000.00
Less: Selling and Administrative expense 488,000.00
Operating Income 202,000.00
Less: Interest expense 40,000.00
Income before income tax 162,000.00
Income tax expense 66,000.00
Net income 96,000.00