A)Calculate the ratios using the numbers from the Financial Statements 2012.

B)Comparing them with the industry average and comment on each.

Imperial Electronics Ltd. Statement of Financial Position As at December 31, 2012 (in $) Non-current assets Property, plant, and equipment Accumulated depreciation Total non-current assets 2,500,000 3,300,000 5,800,000 4,200,000 Current assets Inventories Trade receivables Prepaid expenses Term deposits Cash Equity 8,200,000 Common shares (2,000,000) Retained earnings 6,200,000 Total equity Long-term borrowings Current liabilities 4,100,000 Trade and other payables 3,500,000 Notes payable 250,000 Accruals 200,000 Current income tax payable 150,000 Total current liabilities 8,200,000 Total liabilities 14,400,000 Total equity and liabilities 2,500,000 1,600,000 220,000 80,000 4,400,000 8,600,000 14,400,000 Total current assets Total assets Imperial Electronics Ltd. Statement of Income For the year ended December 31, 2012 (in %) 30,000,000 (23,000,000) 7,000,000 Revenue Cost of sales Gross profit Expenses: Distribution costs Lease Depreciation Administrative expenses Total expenses Finance costs Total Profit before taxes Income tax expense Profit for the year (2,500,000) (125,000) (300,000) (1,700,000) (4,625,000) (400,000) (5,025,000) 1,975,000 (900,000) 1,075,000 Imperial Electronics Ltd. Statement of Financial Position As at December 31, 2012 (in $) Non-current assets Property, plant, and equipment Accumulated depreciation Total non-current assets 2,500,000 3,300,000 5,800,000 4,200,000 Current assets Inventories Trade receivables Prepaid expenses Term deposits Cash Equity 8,200,000 Common shares (2,000,000) Retained earnings 6,200,000 Total equity Long-term borrowings Current liabilities 4,100,000 Trade and other payables 3,500,000 Notes payable 250,000 Accruals 200,000 Current income tax payable 150,000 Total current liabilities 8,200,000 Total liabilities 14,400,000 Total equity and liabilities 2,500,000 1,600,000 220,000 80,000 4,400,000 8,600,000 14,400,000 Total current assets Total assets Imperial Electronics Ltd. Statement of Income For the year ended December 31, 2012 (in %) 30,000,000 (23,000,000) 7,000,000 Revenue Cost of sales Gross profit Expenses: Distribution costs Lease Depreciation Administrative expenses Total expenses Finance costs Total Profit before taxes Income tax expense Profit for the year (2,500,000) (125,000) (300,000) (1,700,000) (4,625,000) (400,000) (5,025,000) 1,975,000 (900,000) 1,075,000