Q1: Furen Pharmaceutical (SHA: 600871) reported the following accounting data in 2018 and 2017 respectively: In million RMB Cash and cash equivalents Total interest-bearing debt Interest revenue Interest expense Current asset Total asset Stockholders' equity 2017 1,656 3,407 7 135.8 4,437 9,880 4,660 2018 1,816 3,595 6.1 183 4,472 10,717 5,467 In July 2018, Furen announced that it's unable to pay the 62 million RMB dividend due to insufficient cash on hand.

Q1: Furen Pharmaceutical (SHA: 600871) reported the following accounting data in 2018 and 2017 respectively: In million RMB Cash and cash equivalents Total interest-bearing debt Interest revenue Interest expense Current asset Total asset Stockholders' equity 2017 1,656 3,407 7 135.8 4,437 9,880 4,660 2018 1,816 3,595 6.1 183 4,472 10,717 5,467 In July 2018, Furen announced that it's unable to pay the 62 million RMB dividend due to insufficient cash on hand.

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

Q1: Furen Pharmaceutical (SHA: 600871) reported the following accounting data in 2018
and 2017 respectively:
In million RMB
Cash and cash equivalents
Total interest-bearing debt
Interest revenue
Interest expense
Current asset
Total asset
Stockholders' equity
2017
1,656
3,407
7
135.8
4,437
9,880
4,660
2018
1,816
3,595
6.1
183
4,472
10,717
5,467
In July 2018, Furen announced that it's unable to pay the 62 million RMB dividend due
to insufficient cash on hand.
4
Required:
Discuss how users of the financial statements could have identified any warning signs
based on the data in the above table.

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