Additional information:• Weighted-average ordinary shares in 2017 were $60,000QUESTIONSBased on the financial data above, do the following:a. Calculate the financial ratio of VENUS TRADING COMPANY in 2017 below:• Current ratio• Account receivable turnover• Inventory turnover• Asset turnover• Return on assets• Return on ordinary shareholders equity• Earnings per share• Debts to total assets ratioProvide an interpretation for each of the financial ratio calculations above.b. Based on the calculation results in point a, provide an analysis of performancefinance VENUS TRADING COMPANY in 2017. Venus" TRADING COMPANYIncome StatementFor the years ended December 3120172016Net Sales$1.818.500 $1.750.500Cost of Goods Sold1.011.500996.000Gross Profit807.000754.500Selling and administrative expenseIncome from operations516.000479.000291.000275.500Interest Expense15.00014.000Income before Income Tax276.000261.500Income Tax Expense84.00077.000Net Income$192.000$184.500 Venus" TRADING COMPANYStatement of Financial PositionDecember 31AssetsPlan assets (Net)2016$600.300 $520.3002017Current Assets$110.950$115.500InventoryAccount receivable (net)105.750102.800Short-term investments69.00050.000Cash60.10064.200Total assets$946.100$852.800Equity and Liabilities20172016EquityShare Capital Ordinary ($5)Retained EarningsTotal EquityBonds Payable$300.000$300.000242.600165.400542.600465.400200.000200.000Current liabilitiesAccounts payableIncome taxes payable160.000145.40043.50042.000Total current liabilities203.500187.400Total liablitiesTotal equity and liabilities403.500387.400www$946.100$852.800

Current Ratio: Formula: Current ratio = Current Assets / Current Liabilities = (Inventory + Accounts…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Additional information: • Weighted-average ordinary shares in 2017 were $60,000 QUESTIONS Based on the financial data above, do the following: a. Calculate the financial ratio of VENUS TRADING COMPANY in 2017 below: • Current ratio • Account receivable turnover • Inventory turnover • Asset turnover • Return on assets • Return on ordinary shareholders equity • Earnings per share • Debts to total assets ratio Provide an interpretation for each of the financial ratio calculations above. b. Based on the calculation results in point a, provide an analysis of performance finance VENUS TRADING COMPANY in 2017.

Venus" TRADING COMPANY
Income Statement
For the years ended December 31
2017
2016
Net Sales
$1.818.500 $1.750.500
Cost of Goods Sold
1.011.500
996.000
Gross Profit
807.000
754.500
Selling and administrative expense
Income from operations
516.000
479.000
291.000
275.500
Interest Expense
15.000
14.000
Income before Income Tax
276.000
261.500
Income Tax Expense
84.000
77.000
Net Income
$192.000
$184.500

Venus" TRADING COMPANY
Statement of Financial Position
December 31
Assets
Plan assets (Net)
2016
$600.300 $520.300
2017
Current Assets
$110.950
$115.500
Inventory
Account receivable (net)
105.750
102.800
Short-term investments
69.000
50.000
Cash
60.100
64.200
Total assets
$946.100
$852.800
Equity and Liabilities
2017
2016
Equity
Share Capital Ordinary ($5)
Retained Earnings
Total Equity
Bonds Payable
$300.000
$300.000
242.600
165.400
542.600
465.400
200.000
200.000
Current liabilities
Accounts payable
Income taxes payable
160.000
145.400
43.500
42.000
Total current liabilities
203.500
187.400
Total liablities
Total equity and liabilities
403.500
387.400
www
$946.100
$852.800

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