Question
LARKER TOOL SA Statements of Financial Position December 31 Assets 2017 2016 Plant assets (net) R$600,300 R$520,300 Current assets Inventory R$110,950 R$115,500 Accounts receivable (net)
LARKER TOOL SA
Statements of Financial Position
December 31
Assets 2017 2016
Plant assets (net) R$600,300 R$520,300
Current assets
Inventory R$110,950 R$115,500
Accounts receivable (net) 105,750 102,800
Short-term investments 69,000 50,000
Cash 60,100 345,800 64,200 332,500
Total assets R$946,100 R$852,800
Equity and Liabilities 2017 2016
Equity Share capitalordinary (R$5 par) R$300,000 R$300,000
Retained earnings 242,600 165,000
Total equity 542,600 465,400
Bonds payable 200,000 200,000
Current liabilities
Accounts payable 160,000 145,400
Income taxes payable 43,500 42,000
Total current liabilities 203,500 187,400
Total liabilities 403,500 387,400
Total equity and liabilities R$946,100 R$852,800
All sales were on account.
Instructions:
Compute the following ratios for 2017. (Weighted-average ordinary shares in 2017 were 60,000.)
(f) Accounts receivable turnover.
(g) Inventory turnover.
(h) Times interest earned.
(i) Asset turnover.
(j) Debt to assets ratio.
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