[Solved] Rami lo3 accounting

Assignment Prompt & Instructions

– ## LO3-answersheetcopyrami.xlsx **## LO3-answersheetcopyrami.xlsx** ## Sheet2 | | | | | | | | | | | | | | | | | | | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Omega Bookshop | | | | | | | Omega company | | Income Statement-comparative statements | | | | | | | Financial position- Years ended December 31,2021 and 2022 | | | December 31.2021 | December 31.2022 | | | | | Item | 2021 | 2022 | | Ratio | 2021 | 2022 | Ratio interpretation | Compare (2021&2022) | Interpretation | | Net Sales (50% credit) | 3640 | 4990 | | | | | Assets | | | | Liquidity | | Cost of goods sold | -1920 | -2640 | | | | | Current Assets | | | | net working capital | | Gross profit | 1720 | 2350 | | | | | Cash & Cash equivalent | 50 | 72 | | current ratio | | Operating expenses (OPEX): | | | | | | | Accounts Receivable | 180 | 190 | | Quick ratio | | Salaries and wages expenses | 900 | 1150 | | | | | Merchandising inventory | 250 | 320 | | cash ratio | | Supplies expenses | 200 | 300 | | | | | Prepaid expense’s | 10 | 18 | | Profitability Ratio | | Rent expenses | 300 | 400 | | | | | Total current Assets | 490 | 600 | | Utilities expenses | 200 | 300 | | | | | Long term investment | 200 | 180 | | Net Profit Margin | | Total operating expenses | -1600 | -2150 | | | | | Property plant & equipment (PP&E) | 900 | 1004 | | Gross Margin Ratio | | Income before interest and tax | 120 | 200 | | | | | Total Assets | 1590 | 1784 | | Efficiency | | Interest expenses | -20 | -40 | | | | | Liabilities | | | | Accounts Receivable Turnover Ratio | | Income before tax | 100 | 160 | | | | | Accounts payable | 90 | 235 | | Accounts Receivable Days | | Tax (25%) | -25 | -40 | | | | | salaries payable | 25 | 30 | | Inventory Turnover Ratio | | Net Income (Net loss) | 75 | 120 | | | | | Tax payable | 25 | 35 | | Inventory Turnover Days | | | | | | | | | Total current liabilities | 140 | 300 | | investment ratios | | | | | | | | | Long term Liabilities | 250 | 250 | | Earnings per share | | | | | | | | | Total liabilities | 390 | 550 | | price-to-earnings (P/E) ratio | | | | | | | | | Stockholders’ Equity | | | | | | | | | Common stock | 900 | 1050 | | | | | | | | | Retained earning | 300 | 184 | | | | | | | | | Total stockholders’ Equity | 1200 | 1234 | | | | | | | | | Total Equity & Liabilities | 1590 | 1784 | ## Sheet3 | | | | | | | — | — | — | — | — | | | | 2021 | 2022 | Industry Average | | | Current ratio | 1.2 | 1.1 | 2 | | | Quick ratio | 0.76 | 0.8 | 1.25 | | | Inventory turnover | 0.8 | 0.7 | 1.6 | | | average collection period | 98 | 87 | 64 | | | Profit margin | 1.50% | 2.10% | 5.20% | | | Return on assets | 4.50% | 6.50% | 1.10% | | | Return on equity | 6.40% | 90% | 2.60% | | | | 2021 | 2022 | Year to year comparison | | | Current ratio | 1.2 | 1.1 | | | Interpretation | | | Acid ratio | 0.76 | 0.8 | | | Interpretation | | | Inventory turnover | 0.8 | 0.7 | | | Interpretation | | | Average collection period | 98 | 87 | | | Interpretation | | | Profit margin | 1.50% | 2.10% | | | Interpretation | | | Return on assets | 4.50% | 6.50% | | | Interpretation | | | Return on equity | 6.40% | 90% | | | Interpretation | **## LO3-answersheetcopyrami.xlsx** ## Sheet2 | | | | | | | | | | | | | | | | | | | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Omega Bookshop | | | | | | | Omega company | | Income Statement-comparative statements | | | | | | | Financial position- Years ended December 31,2021 and 2022 | | | December 31.2021 | December 31.2022 | | | | | Item | 2021 | 2022 | | Ratio | 2021 | 2022 | Ratio interpretation | Compare (2021&2022) | Interpretation | | Net Sales (50% credit) | 3640 | 4990 | | | | | Assets | | | | Liquidity | | Cost of goods sold | -1920 | -2640 | | | | | Current Assets | | | | net working capital | | Gross profit | 1720 | 2350 | | | | | Cash & Cash equivalent | 50 | 72 | | current ratio | | Operating expenses (OPEX): | | | | | | | Accounts Receivable | 180 | 190 | | Quick ratio | | Salaries and wages expenses | 900 | 1150 | | | | | Merchandising inventory | 250 | 320 | | cash ratio | | Supplies expenses | 200 | 300 | | | | | Prepaid expense’s | 10 | 18 | | Profitability Ratio | | Rent expenses | 300 | 400 | | | | | Total current Assets | 490 | 600 | | Utilities expenses | 200 | 300 | | | | | Long term investment | 200 | 180 | | Net Profit Margin | | Total operating expenses | -1600 | -2150 | | | | | Property plant & equipment (PP&E) | 900 | 1004 | | Gross Margin Ratio | | Income before interest and tax | 120 | 200 | | | | | Total Assets | 1590 | 1784 | | Efficiency | | Interest expenses | -20 | -40 | | | | | Liabilities | | | | Accounts Receivable Turnover Ratio | | Income before tax | 100 | 160 | | | | | Accounts payable | 90 | 235 | | Accounts Receivable Days | | Tax (25%) | -25 | -40 | | | | | salaries payable | 25 | 30 | | Inventory Turnover Ratio | | Net Income (Net loss) | 75 | 120 | | | | | Tax payable | 25 | 35 | | Inventory Turnover Days | | | | | | | | | Total current liabilities | 140 | 300 | | investment ratios | | | | | | | | | Long term Liabilities | 250 | 250 | | Earnings per share | | | | | | | | | Total liabilities | 390 | 550 | | price-to-earnings (P/E) ratio | | | | | | | | | Stockholders’ Equity | | | | | | | | | Common stock | 900 | 1050 | | | | | | | | | Retained earning | 300 | 184 | | | | | | | | | Total stockholders’ Equity | 1200 | 1234 | | | | | | | | | Total Equity & Liabilities | 1590 | 1784 | ## Sheet3 | | | | | | | — | — | — | — | — | | | | 2021 | 2022 | Industry Average | | | Current ratio | 1.2 | 1.1 | 2 | | | Quick ratio | 0.76 | 0.8 | 1.25 | | | Inventory turnover | 0.8 | 0.7 | 1.6 | | | average collection period | 98 | 87 | 64 | | | Profit margin | 1.50% | 2.10% | 5.20% | | | Return on assets | 4.50% | 6.50% | 1.10% | | | Return on equity | 6.40% | 90% | 2.60% | | | | 2021 | 2022 | Year to year comparison | | | Current ratio | 1.2 | 1.1 | | | Interpretation | | | Acid ratio | 0.76 | 0.8 | | | Interpretation | | | Inventory turnover | 0.8 | 0.7 | | | Interpretation | | | Average collection period | 98 | 87 | | | Interpretation | | | Profit margin | 1.50% | 2.10% | | | Interpretation | | | Return on assets | 4.50% | 6.50% | | | Interpretation | | | Return on equity | 6.40% | 90% | | | Interpretation |