Question 1 :

The following information is taken from records of ABC Company:

Items	2017	2018
Bank Short-Term Borrowings	479	13,315
Accounts & Notes Payable	289,313	271,468
Accrued Expenses	1,803	4,732
Dividend payable	0	1
Provisions	518	518
Other Current Liabilities	17,516	10,911
Other Long Term debt	58	55
Paid-in Capital	25,000	25,000
Legal Reserves	860	1,303
Retained Earnings (loss)	(1,852)	1,515
Profit for the year	10,862	17,143
Time Deposits	651	3,225
Cash	34,689	64,746
Accounts & Notes Receivable (net)	42,317	81,295
Advances To Suppliers	4,775	8,762
Due From Parent Company	246,730	158,928
Prepaid Expenses	173	340
Other Debit Balances	11,635	19,133
Inventory	2,951	8,796

Gross Fixed Assets	3,405	3,772
Accumulated Depreciation	2,770	3,035

Items	2017	2018
Selling & Marketing Expenses	2,075	1,839
General & Admin. Expenses	7,008	12,773
Provisions	1,655	58
Depreciation	230	265
FX Gain (Loss)	(3,864)	1,132
Interest Income	1,798	7,333
Other Bank Charges	918	(,306
Income Taxes	5,863	5,617
Sales Revenue	457,110	695,557
COGS	426,434	665,021
Net Profit	10,862	17,143

1. Prepare financial statements ( income statement and Balance sheet)
2. According to above information, answer the following questions:

1. The companys gross profit margin?
2. The companys net profit margin?
3. The companys return on assets?
4. The companys return on equity?
5. The companys assets turnover?

6. The companys Inventory turnover?
7. The companys days inventory on hand?
8. The companys receivable turnover?
9. The companys net working capital? 10.The companys current ratio? 11.The companys Quick ratio?

12.The companys average collection period? 13.The companys debt to equity?

14.The companys liability to assets? 15.The companys Equity to assets?

Makes recommendations to ABC company based on your analysis and interpretation of the financial position