Assets ($) 2019 2018 2017 Cash on Hand & at Banks 1844388 2907252 3696201 Accounts Receivable Net 21373839 27958818 23638244 Notes Receivable 0 0 0 Post Dated Cheques 7430502 5910795 5481999 Short Term Investments 111502 111502 0 Inventory 14772540 15359933 16127022 Total Current Assets 50764763 59355234 56162203 Long Term Investments 2247122 2305477 2346362 Fixed Assets Net 36960544 32892460 23018610 Lands 3338194 3344028 3364400 Projects in Progress 5544 4350057 10455510 Total Fixed Assets 40304282 40586545 36838520 Other Assets 6417935 6157108 5067638 Total Assets 99734102 108404364 100414723 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 9488026 9042459 6830212 Credit Banks 21176536 19278649 13508941 Short Term Loans 15347569 14306482 12568640 Accrued Part of Long Term Loans 3816788 3818532 3663256 Total Current Liabilities 63973817 67090416 44303485 Long Term Loans & Notes Payable 9883426 8547662 10299548 Other Liabilities 1453776 786012 617355 Total Liabilities 75311019 76424090 55220388 Shareholders Equity ($) 2019 2018 2017 Authorized Capital 25000000 25000000 25000000 Subscribed Capital 25000000 25000000 25000000 Paid in Capital 25000000 25000000 25000000 Compulsory Reserves 9260627 9260627 9260627 Voluntary Reserve 9372759 9372759 9372759 Other Reserves 7250655 7250655 7250655 Accumulated Change in Fair Value -6993454 -6943490 -6650654 Retained Earnings -20483652 -13139552 -190906 Total Shareholders Equity 23406935 30800999 44042481 Non-controlling Interest 1016148 1179275 1151854 Total Liabilities & Shareholders Equity 99734102 108404364 100414723 Income Statement ($) 2019 2018 2017 Operating Revenues 54861730 53325832 52319303 Operating Expenses 34133308 32839409 29327945 Gross Profit 20728422 20486423 22991358 General and Administrative Expenses 4932372 5605146 5343718 Selling and Distribution Expenses 13070823 15955128 16356364 Depreciation (Period) 3401511 3167175 2807433 Other Operating Expenses 6372015 3155539 9342414 Net Operating Income -3646788 -4229390 -8051138 Other Revenues 76241 60187 302402 Other Expenses 0 0 81100 Income Before Interest & Tax -3570547 -4169203 -7829836 Interest Expenses 3410156 2965065 1826704 Net Income Before Tax -6980703 -7134268 -9656540 Income Tax (Period) 519667 -1091017 5723 Income Tax (Previous Years) 0 0 0 Universities and Research Train Fees 0 0 0 Board of Directors Remuniration 0 0 1500 Net Income -7500370 -6043251 -9663763 Non-controlling Interest -156270 -58039 27876 Net Income Pertains to Shareholders -7344100 -5985212 -9691639 - Evaluate Liquidity of A company for 2018 and 2019 using the following ratio and give recommendation 1.Inventory Turnover in Days = Average Inventory / (COGS/365) 2.Accounts Receivable Turnover in Days = Average Gross Receivables / (Net Sales/365) 3.Cash Ratio = (Cash Equivalent + Marketable Securities)/Current Liabilities) 4.Current Ratio = Current Assets/Current Liabilities 5.Sales to Working Capital = Net Sales / Average Working Capital

Assets ($) 2019 2018 2017 Cash on Hand & at Banks 1844388 2907252 3696201 Accounts Receivable Net 21373839 27958818 23638244 Notes Receivable 0 0 0 Post Dated Cheques 7430502 5910795 5481999 Short Term Investments 111502 111502 0 Inventory 14772540 15359933 16127022 Total Current Assets 50764763 59355234 56162203 Long Term Investments 2247122 2305477 2346362 Fixed Assets Net 36960544 32892460 23018610 Lands 3338194 3344028 3364400 Projects in Progress 5544 4350057 10455510 Total Fixed Assets 40304282 40586545 36838520 Other Assets 6417935 6157108 5067638 Total Assets 99734102 108404364 100414723 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 9488026 9042459 6830212 Credit Banks 21176536 19278649 13508941 Short Term Loans 15347569 14306482 12568640 Accrued Part of Long Term Loans 3816788 3818532 3663256 Total Current Liabilities 63973817 67090416 44303485 Long Term Loans & Notes Payable 9883426 8547662 10299548 Other Liabilities 1453776 786012 617355 Total Liabilities 75311019 76424090 55220388 Shareholders Equity ($) 2019 2018 2017 Authorized Capital 25000000 25000000 25000000 Subscribed Capital 25000000 25000000 25000000 Paid in Capital 25000000 25000000 25000000 Compulsory Reserves 9260627 9260627 9260627 Voluntary Reserve 9372759 9372759 9372759 Other Reserves 7250655 7250655 7250655 Accumulated Change in Fair Value -6993454 -6943490 -6650654 Retained Earnings -20483652 -13139552 -190906 Total Shareholders Equity 23406935 30800999 44042481 Non-controlling Interest 1016148 1179275 1151854 Total Liabilities & Shareholders Equity 99734102 108404364 100414723 Income Statement ($) 2019 2018 2017 Operating Revenues 54861730 53325832 52319303 Operating Expenses 34133308 32839409 29327945 Gross Profit 20728422 20486423 22991358 General and Administrative Expenses 4932372 5605146 5343718 Selling and Distribution Expenses 13070823 15955128 16356364 Depreciation (Period) 3401511 3167175 2807433 Other Operating Expenses 6372015 3155539 9342414 Net Operating Income -3646788 -4229390 -8051138 Other Revenues 76241 60187 302402 Other Expenses 0 0 81100 Income Before Interest & Tax -3570547 -4169203 -7829836 Interest Expenses 3410156 2965065 1826704 Net Income Before Tax -6980703 -7134268 -9656540 Income Tax (Period) 519667 -1091017 5723 Income Tax (Previous Years) 0 0 0 Universities and Research Train Fees 0 0 0 Board of Directors Remuniration 0 0 1500 Net Income -7500370 -6043251 -9663763 Non-controlling Interest -156270 -58039 27876 Net Income Pertains to Shareholders -7344100 -5985212 -9691639 - Evaluate Liquidity of A company for 2018 and 2019 using the following ratio and give recommendation 1.Inventory Turnover in Days = Average Inventory / (COGS/365) 2.Accounts Receivable Turnover in Days = Average Gross Receivables / (Net Sales/365) 3.Cash Ratio = (Cash Equivalent + Marketable Securities)/Current Liabilities) 4.Current Ratio = Current Assets/Current Liabilities 5.Sales to Working Capital = Net Sales / Average Working Capital

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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Question

100%

Assets ($)
	2019	2018	2017
Cash on Hand & at Banks	1844388	2907252	3696201
Accounts Receivable Net	21373839	27958818	23638244
Notes Receivable	0	0	0
Post Dated Cheques	7430502	5910795	5481999
Short Term Investments	111502	111502	0
Inventory	14772540	15359933	16127022
Total Current Assets	50764763	59355234	56162203
Long Term Investments	2247122	2305477	2346362
Fixed Assets Net	36960544	32892460	23018610
Lands	3338194	3344028	3364400
Projects in Progress	5544	4350057	10455510
Total Fixed Assets	40304282	40586545	36838520
Other Assets	6417935	6157108	5067638
Total Assets	99734102	108404364	100414723
Liabilities ($)
	2019	2018	2017
Accounts and Notes Payable	9488026	9042459	6830212
Credit Banks	21176536	19278649	13508941
Short Term Loans	15347569	14306482	12568640
Accrued Part of Long Term Loans	3816788	3818532	3663256
Total Current Liabilities	63973817	67090416	44303485
Long Term Loans & Notes Payable	9883426	8547662	10299548
Other Liabilities	1453776	786012	617355
Total Liabilities	75311019	76424090	55220388
Shareholders Equity ($)
	2019	2018	2017
Authorized Capital	25000000	25000000	25000000
Subscribed Capital	25000000	25000000	25000000
Paid in Capital	25000000	25000000	25000000
Compulsory Reserves	9260627	9260627	9260627
Voluntary Reserve	9372759	9372759	9372759
Other Reserves	7250655	7250655	7250655
Accumulated Change in Fair Value	-6993454	-6943490	-6650654
Retained Earnings	-20483652	-13139552	-190906
Total Shareholders Equity	23406935	30800999	44042481
Non-controlling Interest	1016148	1179275	1151854
Total Liabilities & Shareholders Equity	99734102	108404364	100414723
Income Statement ($)
	2019	2018	2017
Operating Revenues	54861730	53325832	52319303
Operating Expenses	34133308	32839409	29327945
Gross Profit	20728422	20486423	22991358
General and Administrative Expenses	4932372	5605146	5343718
Selling and Distribution Expenses	13070823	15955128	16356364
Depreciation (Period)	3401511	3167175	2807433
Other Operating Expenses	6372015	3155539	9342414
Net Operating Income	-3646788	-4229390	-8051138
Other Revenues	76241	60187	302402
Other Expenses	0	0	81100
Income Before Interest & Tax	-3570547	-4169203	-7829836
Interest Expenses	3410156	2965065	1826704
Net Income Before Tax	-6980703	-7134268	-9656540
Income Tax (Period)	519667	-1091017	5723
Income Tax (Previous Years)	0	0	0
Universities and Research Train Fees	0	0	0
Board of Directors Remuniration	0	0	1500
Net Income	-7500370	-6043251	-9663763
Non-controlling Interest	-156270	-58039	27876
Net Income Pertains to Shareholders	-7344100	-5985212	-9691639

- Evaluate Liquidity of A company for 2018 and 2019 using the following ratio and give recommendation

1.Inventory Turnover in Days = Average Inventory / (COGS/365)

2.Accounts Receivable Turnover in Days = Average Gross Receivables / (Net Sales/365)

3.Cash Ratio = (Cash Equivalent + Marketable Securities)/Current Liabilities)

4.Current Ratio = Current Assets/Current Liabilities

5.Sales to Working Capital = Net Sales / Average Working Capital

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