Grumpy Cat Company

Statement of Comprehensive Income

For the year ended December 31, 2020

2020
Net Sales P4,000,000
Less: Cost of goods sold 1,630,880
Gross profit 2,369,120
Less: Selling expenses 224,891
Administrative expenses 188,845
Other expenses 67,000
Operating income 1,888,384
Less: interest expense 12,560
Net income before tax 1,875,824
Income tax expense 562,747
Net income P1,313,077

Compute for the following ratios and interpret:

1. Current Ratio
2. Acid Test Ratio
3. Cash Ratio
4. Debt Ratio
5. Debt to Equity Ratio
6. Times Interest Earned Ratio
7. Asset Turnover Ratio
8. Inventory Turnover Ratio (and days sales in inventory)
9. Accounts Receivable Turnover Ratio (and days in receivables)
10. Gross Profit Ratio
11. Return on Assets
12. Return on Equity