##### accounting ratios
Query description 1-  Gross revenue share =  gross revenue ÷  gross sales × 100% 2014:24,000 ÷64,000× 100% = 37.5% 2015:32,400 ÷108,000× 100% = 30% 2-  Present ratio = present asset ÷ present liabilities 2014:23,900 ÷14,200 = 1.68 : 1 instances 2015:31,000 ÷20,400 = 1.52 : 1 instances Three-  Fast  ratio = (present asset – inventories) ÷ present liabilities 2014:(23,900 –12,000) ÷14,200 = zero.84 : 1 instances 2015:(31,000 –15,000) ÷20,400 =  zero.78 : 1 instances Four-  Debtors assortment interval = commerce Debtors  ÷ credit score gross sales × 365 2014:10,500 ÷64,000×365= 60 days 2015:14,000 ÷108,000× 365 = 47 days 5-  collectors fee interval = commerce collectors  ÷ *credit score buy × 365 2014:6,800 ÷*42,000 ×365= 59 days 2015:9,400 ÷*78,600× 365 = 44 days *buy = Value of gross sales + (closing stock - opining stock) 2014: 40,000 + (12,000 - 10,000) = *42,000 2015:75,600 + (15,000 - 12,000) = *78,600 6-  Gearing ratio = debt ÷ ( debt + fairness ) ×  100% 2014:60,000 ÷ (60,000  + 26,000 ) ×  100% = 70% 2015:  60,000 ÷ (60,000  + 49,000) ×  100% = 55% required :-  based mostly on the above  accountin ratios , reply the next query ?  1- Clarify what you possibly can deduce from the ratios as at 31 December 2015 andfrom evaluating them with these for 2014. ( touch upon accounting ratios ) 2- State two factors which might trigger the motion within the gross profitpercentages between the 2 years and clarify how they might carry thechange about. Three- State the extent to which you agree or disagree with the next and givebrief causes in your solutions:- a) The present ratio and the short ratio assist to evaluate whether or not an organization isable to fulfill its money owed as they fall due. Subsequently the upper these ratios arethe higher positioned the corporate is.b) A excessive gearing ratio is advantageous to shareholders, as a result of they benefitfrom the revenue produced by investing the cash borrowed.