ACC500 Accounting Principles
Group Assignment 2 September 2017 2. Vertical Analysis
Golden Noodle Vertical Analysis Sales Cost of Sales Gross Profit Interest Expense Net Profit after Tax Total Assets Current Assets Current Liabilities Total Debt Total Liabilities Total Owners' Equity 2016 100% 51% 49% 0.5% 9% 2015 100% 51% 49% 20% 100% 59% 41% 36% 37% 62% 100% 92% 8% 8% 8% 335%
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ACC500 Accounting Principles Tasty Jiaozi Vertical Analysis Sales Cost of Sales Gross Profit Interest Expense Net Profit after Tax Group Assignment 2 September 2017 2016 100% 70% 30% 0.3% 8% 2015 100% 70% 30% 0.2% 8% Total Assets Current Assets Current Liabilities Total Debt Total Liabilities Total Owners' Equity
100% 76% 12% 23% 29% 71% 100% 74% 13% 22% 35% 64%
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ACC500 Accounting Principles
Group Assignment 2
September 2017
3. Ratio Analysis
Golden Noodle Ratio analysis
Liquidity Ratio Net Working Capital Calculation for Golden Noodle for 2016 FY Current Assets – Current Liabilities 138151 - 37543= 100608 Current Assets / Current Liabilities 138151 /37543 = 3.68 Cash + AR / Current Liabilities 75685+20000 / 37543 = 2.55 Sales / Average AR 567480 / (20000 +5000 ) /2 567480 /25000 = 22.7 365 / A/R Turnover 365 / 22.7 = 16 days EBIT / Interest Cost 61938 / 3200= 19 times Total Debt / Total Assets 87543 / 232301 =38 % Gross Profit / Sales 277737 / 567480 = 49 % Net Profit after Tax / Sales 50738 /567480 = 9 % (Total Assets 2014 + Total Assets 2015)/2 ( 232301 +20578 )/2 = 126440 NPAT / Avge Total Assets 50738 / 126440 = 40 % (OE 2014 + OE 2015) / 2 ( 144758 + 69020 ) /2 = 106889 NPAT/ Avge Owners Equity Current Ratio Quick Ratio Activity Leverage Step 1: A/R Turnover Step 2: Average Collection Period Interest Cover Debt to Total assets Profitability Gross Profit Margin Net Profit Margin Step 1:Avge Total Assets Step 2: Return on Total Assets Step 1: Average OE Step 2:Return on Owners Equity
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ACC500 Accounting Principles
Group Assignment 2 September 2017 50738 / 106889 = 47 % Page 8 of 9
ACC500 Accounting Principles
Tasty Jiaozi Ratio analysis
Liquidity Ratio Net Working Capital Group Assignment 2 September 2017 Current Ratio Quick Ratio Activity Leverage Step 1: A/R Turnover Step 2: Average Collection Period Interest Cover Calculation for Tasy Jiaozi for 2016 FY Current Assets – Current Liabilities 222100 - 34750 = 187350 Current Assets / Current Liabilities 22210 / 34750 = 6.39 Cash + AR / Current Liabilities 167100+35000 / 34750 = 5.82 Sales / Average AR 1708900 / (35000 + 40000 ) /2 1708900 / 75000 = 22.79 365 / A/R Turnover 365 / 22.79 = 16 days EBIT / Interest Cost 149450 / 5250 = 28 times Total Debt / Total Assets 84750 / 222100 = 29 % Gross Profit / Sales 512670 / 1708900 =30 % Net Profit after Tax / Sales 139700 /1708900 = 8 % (Total Assets 2014 + Total Assets 2015)/2 ( 246950 + 292100 )/2 = 269525 NPAT / Avge Total Assets 139700 /269525 = 51 % (OE 2014 + OE 2015) / 2 ( 159700+ 207350 ) /2 =183525 NPAT/ Avge Owners Equity 13970 / 184525 = 8 % Debt to Total assets Profitability Gross Profit Margin Net Profit Margin Step 1:Avge Total Assets Step 2: Return on Total Assets Step 1: Average OE Step 2:Return on Owners Equity Page 9 of 9
