ost of goods sold :- Sales - gross profit = 1000000 - 400000 = 600000 Calculation of total expenses:- (Depreciation +

[answerhappygod]

ost of goods sold :-
Sales - gross profit = 1000000 - 400000 = 600000
Calculation of total expenses:- (Depreciation + advertisement
exp. + Rent + salaries + commission + other exp. ) = (80000 + 60000
+ 15000 + 56000 + 5000 + 7000) = 223000
Calculation of Gross profit margin:-
Formula = sales - cost of goods sold
= 1000000 - 600000
= 400000
Calculation of gross profit percentage
margin:-Formula = (Gross profit margin / sales)*100
= (400000 / 1000000)*100
= 40%
Calculation of net profit margin:- Formula
= Gross profit - total expenses
= 400000 - 223000
= 177000
Calculation of net profit percentage margin:
- Formula = (Net profit / Net Sales)*100%
= (117 000/ 1 000 000) *100
= %17.7
Calculation of Current Ratio: - Formula =
Current Assets / Current Liabilities
= 135 000/ 47 000
= 2.87 : 1
Calculation of Acid Test Ratio: - Formula
= Liquid Assets / Current Liabilities
Liquid Assets = Cash + Accounts Receivables
= 100 000 + 20 000 = 120 000
Acid Test ratio = 120 000/ 47 000 = 2.55 : 1
Calculation of ROCE: Formula = Net Income / Shareholder’s
equity
= 177 000 / 225 000
= 0.79
Required :
In addition to these calculations, please make analysis
and interpretations of the data determined.