ABC LIMITED

Assignment extract:

Your tasks
1. Prepare a chart of accounts from the following list.
2. Determine which ones are Assets, Liabilities, Owners Equity, Revenue
and Expenses. If you are unsure of the meaning of any of the terms below,
please ask your Trainer to provide an explanation.

For 2014 and 2015 calculate the following ratios:
1. Current Ratio
2. Liquid Ratio
3. Equity Ratio
4. Return on Owner’s Equity
5. Gross Profit
6. Inventory Turnover
7. Accounts Receivable Collection (in days ) Assume that all sales were on
credit
8. Net Profit
Use the answer sheet below