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Activity 3: Lets Compute Financial Ratio
Directions: Compute the financial ratio and show your solution.
1. Compute the liquidity ratio of Good Angel Souvenir store. It has 100,000 current liabilities and 200,000 current
assets.
2. What will be the return on investment if a jewelry store net profit after tax is 600,000 and its total assets is
3,000,000?
3. Compute the profit margin ratio of Mr. Canlas Motor Shop having total sales of 1,000,000 net profit after tax
of 300,000?
4. What will be the debt ratio of a fast-food chain if it has total assets of 1,000,000 and total liabilities of 250,000?
5. During the year Danny Furniture reported a total cost of goods sold of 2,000,000 with an average of 1,000,000
worth of inventory. Compute the inventory turnover of Dannys Furniture
assets.
3,000,000?
of 300,000?
worth of inventory. Compute the inventory turnover of Dannys Furniture
Answer:
1.) 2.00
2.) 3.00
3.) 4.00
4.) 5.00
Step-by-step explanation:
paki correct lang..