a)Go to the IFRS sitehttps://www.ifrs.org/about-us/and watch the short video.Explain any two of the benefits of having international standards.

b)i)A piece of equipment costs $300,000 is expected to last 5 years, it is then sold for

$75,000. What amount of depreciation will be entered into the balance sheet in any one year? Explain your answer.

Complete the balance sheet (Balance sheet 1 on Moodle) by adding this value.

iii)Why is depreciation included on the assets side of the balance sheet?

c)What does the current ratio tell us about a company? Calculate it using Balance sheet 1 on Moodle). Explain what this result tells us about the future of the business?

d)Use the Income Statement below to calculate the return on sales. Explain what this means.Use the link in the class notes to compare this value to the industry standard. What does it say about this firm?

Gary's Garden Furniture Income Statement Year to December 31 Last Year Previous Year Sales 350,000 290,000 Cost of Goods Sold (125,000) (110,000) Gross Profit 225,000 180,000 OPERATING EXPENSES Salaries 110,000 105,000 Rent 7,000 7,000 Utilities 2,000 1,500 Bad Debt Provision 4,000 3,000 Depreciation (8,000) (7,000) Total Operating Expenses 131,000 123,500 OPERATING INCOME 94,000 56,500 NON-OPERATING OR OTHER EXPENSES Interest Revenues 1,000 2,000 Gains 2,000 Interest Expense (1,000) (1,000) Losses (1,000) (1,000) Total Non-Operating 1,000 0 NET INCOME 95,000 56,500