Smart Toys Corporation engages in wholesaling and retailing of children toys and books in Hong Kong.
Condensed statements of financial position and income statements for Smart Toys Corporation are as follows:
			Please be reminded that examination can come up with different ratios(all covered in week 11 Materials) instead of ratios below
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31							All answers round to two decimal places except (c ) & (e), eg 54.544 input as 54.54 , 54.545 input as 54.55
	2019		2018		2017
	$		$		$			2019		2018
Plant and equipment (net)	500,000		466,000		440,000		a)Current ratio	5.11 times		[A]times
Intangible Assets	580,000		480,000		412,000		b) Acid Test Ratio	[B]times		[C]times
Short Term Investments	56,000		140,000		97,200		b)Inventory Turnover	[D] times		[E] times
Prepaid Insurance (less than 12 months)	4,000		4,000		3,800		c)Average days to sell inventory	100 Days		[F] Days	(Round to days, no decimal place required)
Inventory	126,000		119,000		79,000		d)Accounts Receivable turnover	[G] times		[H] times	(Assume all the sale are credit sales)
Accounts receivables (net)	54,000		48,000		60,000		e) Average Collection Period	[I] Days		[J] Days	(Round to days, no decimal place required)
Cash	220,000		144,000		122,000		f)Profit Margin	[K]%		[L]%
	1,540,000		1,401,000		1,214,000		g)Return on Assets	[M]%		[N]%
							h)Asset Turnover	[O] times		[P] times
Accounts Payable	80,000		100,000		100,000		i) Return on ordinary shareholders' Equity	[Q]%		[R]%
Salaries Payable and other current liabilities	10,000		16,000		12,000		j) Dividend Payout Ratio	0.00%		[S]%
Long-term debt (due in five years)	91,000		104,000		98,000		k)Earings per Share	$[T]		$[U]
Ordinary shares, $10 par	400,000		400,000		360,000		(Weighted-average ordinary shares in 2019 were 40,000 and in 2018 were 38,000)
Retained earnings	959,000		781,000		644,000		l)Time interest earned ratio	[V]times		[W] times
	1,540,000		1,401,000		1,214,000		m) Debt to total assets ratio	[X]%		15.70%
SMART TOYS CORPORATION
INCOME STATEMENT							For the following questions , please state year 2019 or 2018
FOR THE YEAR ENDED DECEMBER 31
	2019		2018				Based on the calculated ratios:
	$		$				Which year did the company collect money faster from the customer ? Year [Y]
Sales	866,000		799,000				Which year did the company have a better position to pay off the short term liabilities Year [Z]
Less: Sales allowances	13,000		18,000
Net sales	853,000		781,000
Less: Cost of goods sold	445,000		414,000
Gross profit	408,000		367,000
Operating expenses	180,000		190,000
Less: Interest expense	20,000		16,000
Less: Income tax	30,000		24,000
Net income	178,000		137,000