1.The Return On Assets (ROA) for the farm business (KingZAK) in year 2006 is 4.3% on money invested and in year 2007, this rose to 5.85%

a) True

b) False

c) Further information is required to solve the question

2.The Net Working Capital for the farm business (KingZAK) increased by Gh 87,000 from 2006 to 2007

a) True

b) False

c) Further information is required to solve the question

3.There is a fall in current asset by 85% from 2006 to 2007

a.True

b.False

c.Further information is required to solve the question

4.In 2007, the contribution of creditors to the farm business is higher than owners equity compared with year 2006 accounting period

a) True

b) False

c) Further information is required to solve the question

5.Fixed assets for the company increased by 4.8% from 2006 to 2007

a) True

b) False

c) Further information is required to solve the question

6.There is an increase in the value of total assets for the company by 9.2% from 2006 to 2007

a) True

b) False

c)Further information is required to solve the question

7. Current liabilities have increased by 31.0% mainly from 2006 to 2007

a) True

b) False

c) Further information is required to solve the question

8.The Inventory Turnover for the farm business (KingZAK) is quicker in year 2007 than in year 2006.

a) True

b) False

c) Further information is required to solve the question

9.Total liabilities remain unchanged for the two years

a) True

b) False

c) Further information is required to solve the question

10.Total liabilities and owners equity have risen by Gh 73,000 from 2006 to 2007

a) True

b) False

c) Further information is required to solve the question

USE THE INFORMATION CONTAINED IN TABLE 1 BELOW TO ANSWER THE FOLLOWING QUESTIONS. STATE WHETHER THE STATEMENTS GIVEN ARE TRUE OR FALSE. IF FALSE WORK AND PROVIDE THE CORRECT THE ANSWER. Table 1 KingZAK Farms' balance sheet as of December 31, 2006 and December, 31 2007 Current assets 2006 2007 Cash Ghc 20,000 Ghc 122,000 Crop inventories 50,000 60,000 Accounts receivables 22,000 17,000 Prepaid expenses 6,000 4,000 Cash in growing crops 25,000 25,000 Fixed assets Breeding livestock 150,000 150,000 Less accumulated depreciation (30,000) (42,000) Machinery and equipment 380,000 360,000 Less accumulated depreciation (165,000) (159,000) Buildings and improvements 160,000 160,000 Less accumulated depreciation (66,000) (72,000) Land 240,000 240,000 Current liabilities Accounts payable 32,000 35,000 Short-term notes payable 12,000 26,000 Current portion of term debt 5,000 6,000 Accrued interest 2,000 3,000 Income taxes payable 5,000 5,000 Current portion of deferred taxes 2,000 1,000 Long term liabilities Non-current portion of notes payable 25,000 32,000 Non-current portion real estate debt 115,000 111,000 Non-current portion of deferred taxes 27,000 27,000 Retained earnings 504,000 556,000