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.)

(a) Earnings per share. (b) Return on ordinary shareholders equity. (c) Return on assets. (d) Current ratio. (e) Acid-test ratio.

(f) Accounts receivable turnover. (g) Inventory turnover. (h) Times interest earned. (i) Asset turnover.

(j) Debt to assets ratio.