Question: Calculate the financial ratios for the year 2016 and 2017, using the following information extracted from Financial Statements of ATX Co., also provide your interpretation: ATX Co. Statement of Financial Performance For the year ended 31st December 2015 2016 (Rs.) 2017 (Rs.) Sales 29,00,500 Sales 22,19,300 CGS 17,30,000 CGS 12,90,000 Operating Expenses 3,50,000 Operating Expenses 2,97,000 Interest Expense 52,000 Interest Expense 34,000 Taxes 10% of EBT Taxes 10% of EBT MPS 12.06/Share & MPS 11.96/Share Total Dividends 240,000 Total Dividends 260,000 ATX Co. Statement of Financial Position As at 31st December 2015 2016 (Rs.) 2017 (Rs.) Current Assets Current Assets Cash in Hand 5,60,000 Cash in Hand 4,50,000 Cash at Bank 7,65,000 Cash at Bank 5,65,000 Marketable Securities 7,23,900 Marketable Securities 7,23,900 Accounts Receivable 7,01,300 Accounts Receivable 6,01,300 Inventory 2,65,000 Inventory 2,75,000 Non-Current Assets Non-Current Assets Land 56,00,000 Land 56,00,000 Building 25,00,000 Building 25,00,000 Machines 38,00,000 Machines 38,00,000 TOTAL ASSETS 14.915.200 Current Liabilities Accounts Payable 13,39,200 Short term Loan 7,06,000 Accruals 8,90,000 Non-Current Liabilities Long Term Loan 32,00,000 Capital Issued, Subscribed & Paid-Up Capital (8,78,000 at Rs. 10 par value) 87,80,000 TOTAL LIABILITIES & CAPITAL 14,915,200 TOTAL ASSETS 14,515,200 Current Liabilities Accounts Payable 13,35,000 Short term Loan 7,06,200 Accruals 8,04,000 Non-Current Liabilities Long Term Loan 28,90,000 Capital Issued, Subscribed & Paid-Up Capital (8,78,000 at Rs. 10 par value) 87,80,000 TOTAL LIABILITIES & CAPITAL 14,515,200