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