| A | B |
|---|
| cost of goods sold | this figure is the total cost of the goods sold during the year-made up of inventory, purchases, and costs of getting the goods to the business eg customs or freight |
| current ratio | THIS INDICATES THE NUMBER OF CURRENT ASSETS AVAIBLE TO MEET EACH DOLLAR OF CURRENT LIABILITY WITHIN THE NEXT ACCOUTING PERIOD |
| equity ratio | this shows the proportion of total assets that have been financed by the owner |
| finance cost % | the finance costs of interest as a percentage of the total sales |
| gross profit | the difference between the selling price and the cost price of goods sold |
| mark up% | the gross profit as a % of the cost of goods sold |
| quick assets | current assets that will be turned into cash within the next month-cash and accounts receivable |
| quick liabilitites | current liabilities that must be apid within the next month such as GST, accounts payable and unsecured overdraft |
| return on equity | this is the owners reward(return) for his or her investment of capital into the business |
| selling expense % | the total selling expenses divided by net sales-this shows what proportion of sales were used up on selling expenses |
| working capital | the difference between current assets total and current liabilties |
| net profit % | the 5 of profit earned in relation to each sales ie 10% would indicate that 10cent of every sales dollar was made in profit |
| current ratio of 2:1 | for every $2 of current assets the owner has $1 of current liabilities. the business can meet its debts within the next year. |
| liquid ratio of 0.8:1 | the business has 80 cents of liquid assets to cover every dollar of liquid liabilities. the business cannot meet its short term debts within the timeframe. |
| equity ratio of 0.8:1 | the owner has financed 80 cent of every $1 of assets of the business |
