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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

Equity

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

Long-term debts

220,000

Current assets

Current liabilities

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

Cash

25,000

Total current assets

210,000

Total liabilities

370,000

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

Expenses

Distribution costs

($ 190,000)

Leasing

(20,000)

Administrative expenses

(140,000)

Amortization

(40,000)

Finance costs

(34,000)

Total expenses

(424,000)

Profit before taxes

96,000

Income tax expense

(30,000)

Profit for the year

$ 66,000

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