Question
REVIEW the Financial Statement below and Calculate various ratios for analysis (**This questions is worth 5 marks**) Sarasota Electronics Inc. Statement of Financial Position as
REVIEW the Financial Statement below and Calculate various ratios for analysis (**This questions is worth 5 marks**) Sarasota Electronics Inc. Statement of Financial Position as at December 31, 2012
Non-current assets |
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| Equity |
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Property, plant and equipment | $610,000 |
| Share capital | $ 200,000 |
Accumulated depreciation | (110,000) |
| Retained earnings | 140,000 |
Total non-current assets | 500,000 |
| Total equity | 340,000 |
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| Long-term debts | 220,000 |
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Current assets |
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| Current liabilities |
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Inventories | 45,000 |
| Trade and other payables | 70,000 |
Trade receivables | 115,000 |
| Short-term borrowings | 80,000 |
Prepaid expenses | 15,000 |
| Total current liabilities | 150,000 |
Marketable securities | 10,000 |
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Cash | 25,000 |
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Total current assets | 210,000 |
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| Total liabilities | 370,000 |
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Total assets | $ 710,000 |
| Equity and liabilities | $ 710,000 |
Sarasota Electronics Inc.
Statement of Income for the period ended December 31, 2012
Revenue |
| $ 820,000 |
Cost of sales |
| (300,000) |
Gross profit |
| 520,000 |
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Expenses |
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Distribution costs | ($ 190,000) |
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Leasing | (20,000) |
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Administrative expenses | (140,000) |
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Amortization | (40,000) |
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Finance costs | (34,000) |
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Total expenses |
| (424,000) |
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Profit before taxes |
| 96,000 |
Income tax expense |
| (30,000) |
Profit for the year |
| $ 66,000 |
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