Good day. can you please assist on the following question below   Consider the information provided below as well as the financial statements and answer the questions that follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co     2019 2020 Sales price per unit R15 R19 Variable cost per unit  R6 R7 Fixed cost (FC) per annum  R650 000 R855 500 Fixed cost per unit  R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R3 100 100 Cost of sales R390 000 R475 000       a. Calculate the current ratio for Pearson & Litt for 2019  b. Explain the results of the current-test ratio (3).  Include the minimum ratio recommended for the ratio in your answer. c. Calculate the gross profit margin for Pearson & Litt for 2020

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Good day. can you please assist on the following question below

 

Consider the information provided below as well as the financial statements and answer the questions that follow.


Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co

 

  2019 2020
Sales price per unit R15 R19
Variable cost per unit  R6 R7
Fixed cost (FC) per annum  R650 000 R855 500
Fixed cost per unit  R3 R4
Current assets R450 600 R560 700
Current liabilities R510 000 R780 000
Retained profit R21 809 R17 600
Net Sales R2 900 320 R3 100 100
Cost of sales R390 000 R475 000
     

a. Calculate the current ratio for Pearson & Litt for 2019 
b. Explain the results of the current-test ratio (3).
 Include the minimum ratio recommended for the ratio in your answer.

c. Calculate the gross profit margin for Pearson & Litt for 2020 

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