• Total gross profits reached $73,500
• We met our objective of keeping operating expenses under 60 percent of the gross profit with them only representing 52 percent of gross profit
• The year’s net profit before taxes reached $32,290
• We saw a 100 percent increase in total revenues between the first quarter and fourth quarter
• We maintained a steady and sufficient current ratio and working capital
In 2013, we managed to generate sales that resulted in a gross profit of $73,500 in gross profit. After deducting our expenses, we had a net profit of $38,210. Additionally, we managed to acquire a sufficient amount of assets to sustain operations and have plans of acquiring additional assets to assist with the …show more content…
Our current ratio, which is our current assets divided by our current liabilities, was 1.60 times, which indicated that we had $1.60 in current assets for every $1 in current liabilities (University of Notre Dame, 2014). Additionally, working capital, which is the “difference between current assets and current liabilities”, was $28,279 (NYU Stern, 2014). Both of these results reflected substantial liquidity for KapConsulting because an ideal capital ratio is 1.00, which indicates that the company has at least a sufficient amount of current assets to cover current liabilities. Our results indicate that we exceeded the minimum threshold by more than 60 percent. Additionally, an ideal working capital is one where current assets exceed current liabilities for the same reasons. Our working capital reflected both our ability to cover current liabilities and the availability of cash for investments in other assets that have income-generating