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Hele Computer services revenue Net sales (of goods) Total sales and revenue Cost of goods sold Net income Quick assets Current assets Total assets Current liabilities Total liabilities Total equity $ 25,307 18,693 44,000 14,052 18,833 90,924 95,568 120,268 875 875 119,393 Required: 1

Accounting Jan 26, 2021

Hele Computer services revenue Net sales (of goods) Total sales and revenue Cost of goods sold Net income Quick assets Current assets Total assets Current liabilities Total liabilities Total equity $ 25,307 18,693 44,000 14,052 18,833 90,924 95,568 120,268 875 875 119,393 Required: 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio. 3. Compute the debt ratio and equity ratio. 4. What percent of its assets are current? What percent are long term? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. (Round your percentage answers to 1 decimal place.) With Service Revenue 68.11% % Without Service Revenue 24.8% Gross margin ratio Net profit margin ratio

Expert Solution

1.

    With Service Revenue Without Service Revenue
Net Profit margin ratio = Net Profit ⁄ Total revenue

=18833/44000

=42.80%

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Net Profit ratio shows the Income earned as the percentage of revenue. It has not been calculated seperately for "without service revenue" as the net profit is the profit after the deduction of indirect expenses which are incurred for the whole organisation and no bifurcation is given for the same. And Net profit is calculated as the percentage of total revenue further net profit cannot exceeds the value of revenue.

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