Ratio Analysis of Greta's Furniture Private Limited

Running Head: ACCOUNTNG PROCESS 1
ACCOUNTNG PROCESS

Running Head: ACCOUNTNG PROCESS
Table of Contents
Question A.................................................................................................................. 3
Question H: Ratio Analysis................................................................................................ 3
Profitability................................................................................................................. 4
Solvency.................................................................................................................... 4
Liquidity.................................................................................................................... 5
Recommendation............................................................................................................. 5
Conclusion..................................................................................................................... 6
References..................................................................................................................... 7

Running Head: ACCOUNTNG PROCESS
Question A
Number Account Element Current/NC
101 Cash Asset Current
112 Accounts Receivable Asset Current
115 Commissions Receivable Asset Current
120 Inventory Asset Current
125 Office Supplies Asset Current
127 GST Paid Asset Other Current
130 Prepaid Insurance Asset Other Current
157 Equipment Asset Non-current
158 Accumulated Depreciation Liability Other current
160 Warehouse Asset Non-current
201 Accounts Payable Liability Current
211 GST Collected Liability Other current
270 Bank Loan Liability Non-current
301 P. Greta, Capital Liability Non-current
Question H: Ratio Analysis
Ratio analysis is technique or a tool that is required to analyze the overall position of the
companies and in this section Greta’s Furniture Private Limited, financial statements have been
analyzed in detail. The ratios are the parameters that are required to be analyzed by the company
so that the real position can be interpreted in the various areas. These areas can be named as