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Assessment of Gelato Industries' Financial Performance in 2014

   

Added on  2019-11-08

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ACCOUNTING FOR MANAGERS
Assessment of Gelato Industries' Financial Performance in 2014_1

Answer a.Current ratio Particulars20152014Current asset8060063125Current liabilities8970034375Current ratio 0.90 1.84Quick ratioParticulars20152014Current asset 8060063125Inventories5915036250Current liabilities8970034375Quick ratio 0.24 0.78Average collection periodParticulars20152014Days365365Account receivables2080015625Credit sales400000187500Averagecollectionperiod 18.98 30.42 Inventory turnover ratioParticulars20152014Sales400000187500Average inventory5915036250Inventory turnover ratio6.765.17Debt ratioParticulars20152014Debt 11953570313Total assets195000140625Debt ratio 61% 50% Interest coverage ratioParticulars20152014EBIT4200018000Interest expense90945719Interest coverage ratio 4.62 3.15
Assessment of Gelato Industries' Financial Performance in 2014_2

Operating profit marginParticulars20152014Operating profit16000075000Sales400000187500Operating profit marginratio40%40%Total asset turnover ratioParticulars20152014Sales400000187500Total asset 195000140625Total asset turnoverratio 2.05 1.33 Fixed asset turnover ratioParticulars20152014Sales400000187500Fixed asset11440077500Fixed asset turnoverratio 3.50 2.42 Return on assetParticulars20152014Net income228848597Total assets195000140625Return on asset 12% 6% Return on equityParticulars20152014Net income228848597Total shareholdersequity7546570312Return on equity 30% 12%
Assessment of Gelato Industries' Financial Performance in 2014_3

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