INTELLIGENT TOYS CORPORATION
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31							All answers round to two decimal places except (c ) & (e), eg 54.544 input as 54.54 , 54.545 input as 54.55
	2019		2018		2017
	$		$		$			2019		2018
Plant and equipment (net)	545,000		488,000		440,000
Intangible Assets	500,000		420,000		412,000		a) Acid Test Ratio	times		times
Short Term Investments	140,000		100,000		99,000		b)Inventory Turnover	times		times
Prepaid Insurance (less than 12 months)	5,000		4,500		4,000		c)Asset Turnover	times		times
Inventory	80,000		120,000		100,000		d) Dividend Payout Ratio	%		%
Accounts receivables (net)	60,000		70,000		65,000		e)Time interest earned ratio	times		times
Cash	104,000		103,500		94,000		f) Debt to total assets ratio	%		%
	1,434,000		1,306,000		1,214,000		g) By using horizontal analysis , there is increase of net sales by % from 2018 to 2019
Accounts Payable	90,000		100,000		100,000		For the following questions , please state year 2019 or 2018
Salaries Payable and other current liabilities	10,000		16,000		12,000
Long-term debt (due in five years)	191,000		104,000		98,000		The company had a shorter average days to sell inventory period in year .
Ordinary shares, $10 par	400,000		400,000		360,000		The company used assets more efficiently to generate business (sales revenue) in year .
Retained earnings	743,000		686,000		644,000		The company retained higher % of net income for expansion by tightening dividend payout policy in year .
	1,434,000		1,306,000		1,214,000		The company used more equity to finance assets in year .
							The company had a stronger ability to meet interest payments in year .
							The company had a better position to pay off the short term liabilities in year .
INTELLIGENT TOYS CORPORATION							By using vertical analysis, the company had better control of the operating expenses in year .
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
	2019		2018
	$		$
Gross Sales	850,000		800,000
Less: Sales allowances	15,000		18,000
Net sales	835,000		782,000
Less: Cost of goods sold	436,000		424,000
Gross profit	399,000		358,000
Operating expenses	190,000		178,000
Less: Interest expense	25,000		17,000
Less: Income tax	27,000		24,000
Net income	157,000		139,000
Beginning RE	686,000		644,000
Dividend (Cash)	100,000		97,000
Ending RE	743,000		686,000