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(Math Example)

The document presents an income statement showing a net income of 680 Taka after taxes from total revenue of 5200 Taka and operating expenses of 1700 Taka. It also includes a balance sheet detailing assets and liabilities, with total assets amounting to 42000 Taka and a debt ratio of 100%. Additionally, various financial ratios are analyzed, indicating performance metrics such as a profit margin of 13.07% and a return on assets of 1.62%.

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rafidmahbub2004
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9 views2 pages

(Math Example)

The document presents an income statement showing a net income of 680 Taka after taxes from total revenue of 5200 Taka and operating expenses of 1700 Taka. It also includes a balance sheet detailing assets and liabilities, with total assets amounting to 42000 Taka and a debt ratio of 100%. Additionally, various financial ratios are analyzed, indicating performance metrics such as a profit margin of 13.07% and a return on assets of 1.62%.

Uploaded by

rafidmahbub2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Income Statement Amount(Taka)

REVENUE/ ( Net sales)/ (Sales) 5200 100%


(-)Cost of goods sold 2700 51.92%
Gross Profit 2500 48%
Salaries and wages 600
Rent 800
Utilities 300
(-)Total OPERATING EXPENSES 1700 33%
Net Income Before Taxes 800 15%
/(EBIT)/(Operating Income)
(-)Taxes on income (15%) 120
Net Income After Taxes 680
NET INCOME 680 13.08%

Balance Sheet
Cash = 6,000 Account payable = 7,000
Marketable Security = 5,000
Account receivable = 7,000 Notes Payable = 6,000
Inventories = 4,000 Accrued wages = 4,000
Machineries = 5,000 Accrued taxes = 5,000
Land = 15,000 Debt = 20,000

 Debt = 10,000 (Short term)

 Common size Analysis

 Ratio Analysis
- Current ratio (2:1), Quick ratio (1:1) and Cash ratio
- Inventory Turnover Ratio
- DSO ratio ( Lower the value the better it is)
DSO ratio = Account Receivable / Average Sales Per Day = 7000/(5200/365)=491
- Fixed Assets Turnover Ratio
- Fixed Assets Turnover Ratio = Net Sales / Net Fixed Assets= 5200/(5000+15000)=.26
(.25 to .5 maintain the standard)times
- Total Assets Turnover ratio
- Total Assets Turnover ratio = Net Sales / Total Net Assets = 5200/42000 =.12 (<1 not so
good)
- Debt ratio (lower is better)
- (Total Debt / Total Assets) * 100= 42000/42000= 1
- Profit Margin on Sales(Higher is better)
- Profit Margin on Sales = (Net Income / Net Sales) * 100 =(680/5200)*100= 13.07%
- BEP ratio(Higher is better)
- BEP ratio = (EBIT / Total Assets) * 100 = (800/4200)*100= 19.04%
- Return on Assets (ROA) ratio = (Net Income/ Total Assets) *100
- (Higher is better) = (680/42000) *100= 1.62%
- Return on Equity (ROE) ratio
ROE = (Net Income / Total Common Equity) * 100

A= L+OE

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