Ratios

i)Average

Industry average ratio

DG Trading

= Account receivable x 365

= Account receivable x 365

Annual credit sales

Annual credit sales

= 52 days

= RM1230 x 365 days

collection

RM 11200

Period

= 40.08 days

= Current Assets Inventory Prepayment

Current liabilities

ii)Quick
Ratio

= Current Assets Inventory Prepayment

= 1.27:1

Current liabilities
= RM 1950-RM 640
RM 890
=1.47:1

iii)Gross
Profit
Margin

= Gross profit x 100 %

Net sales
= 35.23%

= Gross profit x 100 %

Net sales
= RM2740 x 100
RM 11200
=24.46 %

iv)Current
Ratio

= Current Assets
Current liabilities
=1.90 :1

= Current Assets
Current liabilities
= RM 1950
RM890
= 2.19 : 1

v)Assets
turnover

= Annual sales
Total assets
=3.91 times

= Annual sales
Total assets
= RM 11200
RM3800
= 2.95 times

vi)Net

= Net profit x 100

profit

Net Sales

Margin

= 4.73 %

= Net profit x 100%

Net Sales
= RM 415 x 100%
RM11200
= 3.71 %