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NIPA is contemplating to prepare financial planning for the coming year (for the year 2024). The following are financial statement data for the year ended December 31, 2023. Balance sheet Cash ------------------ K200,000 As/payable------------- K400,000 As/Receivable------- 500,000 Ns/payable----------------- 400,000 Inventory------------- 600,000 Accruals 200,000 Total current assets- 1300,000 Total current liabilities--- 1000,000 Net fixed assets----- 1700,000 Bonds payable------------- 600,000 Total assets---------- K3000,000 Common stock------------ 800,000 Retained Earnings-------- 600,000 Total Liab.& SHs.Equity K3000,000

Income Statement

Sales-------------------------------------------- K7,000,000 Operating costs------------------------------- 5000,000 Earnings before interest & tax-------------- 2000,000 Interest expense------------------------------- 500,000 Earnings before tax -------------------------- 1500,000 Tax (40%) ------------------------------------ 600,000 Net income----------------------------------- 900,000 Dividend------------------------------------- 460,000 Additions to Retained Earnings------------ 440,000

Additional Information Suppose the year 2024 sales are projected to increase by 40% over the year 2023 sales. There is proportional relationship between sales to operating costs, interest expenses, current assets and spontaneous liabilities. The company has planned to maintain the dividend ratio and profit margin position of the previous year. Required: a) Calculate the following ratios and interpret each of them for the year 2023 & 2024 for NIPA:

i. Current ratio ii. Quick ratio iii. Fixed Asset Turn Over

iv. Return On Assets v. Total Debt to Equity vi. Return On Equity vii. EPS assuming 200,000 shares outstanding viii. Net profit margin

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