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 times Intangible Assets 580,000 480,000 412,000 b)Acid Test Ratio times tirties Short Term Investments 56,000 140,000 97,200 b)Inventory Turnover times times Prepaid Insurance (less than 12 months) 4,000 4,000 3,800 c)Average days to sell inventory 100 Days Days (Round to days, no decimal place required) Inventory 126,000 119,000 times 79,000 d)Accounts Receivable turnover times (Assume all the sale are credit sales) Accounts receivables (net) ) 54,000 48,000 60,000 e) Average Collection Period Days Days (Round to days, no decimal place required) Cash 220,000 144,000 122.000 Profit Margin f\ % % % 1,540,000 1,401,000 1.214,000 g)Retum on Assets % % h Asset Turnover times times Accounts Payable % % 80,000 100,000 100,000 i) Return on ordinary shareholders' Equity Salaries Payable and other current liabilities 10.000 16,000 12,000 j) Dividend Payout Ratio 0.00% 91,000 104,000 Long-term debt (due in five years) 98,000 k)Earings per Share S S 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 times times 959.000 781,000 644,0001Time interest earned ratio 1,540,000 1,401,000 1,214,000 m) Debt to total assets ratio % 15.70% % SMART TOYS CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 For the following questions, please state year 2019 or 2018 Based on the calculated ratios: Which year did the company collect money faster from the customer? Year Which year did the company have a better position to pay off the short term liabilities Year Sales Less: Sales allowances Net sales Less: Cost of goods sold Gross profit Operating expenses Less: Interest expense Less: Income tax Net income 2019 2018 $ $ 866,000 799,000 13,000 18,000 853,000 781,000 445.000 414,000 408,000 367,000 180,000 190,000 20,000 16,000 30,000 24,000 178,000 137,000 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 times Intangible Assets 580,000 480,000 412,000 b)Acid Test Ratio times tirties Short Term Investments 56,000 140,000 97,200 b)Inventory Turnover times times Prepaid Insurance (less than 12 months) 4,000 4,000 3,800 c)Average days to sell inventory 100 Days Days (Round to days, no decimal place required) Inventory 126,000 119,000 times 79,000 d)Accounts Receivable turnover times (Assume all the sale are credit sales) Accounts receivables (net) ) 54,000 48,000 60,000 e) Average Collection Period Days Days (Round to days, no decimal place required) Cash 220,000 144,000 122.000 Profit Margin f\ % % % 1,540,000 1,401,000 1.214,000 g)Retum on Assets % % h Asset Turnover times times Accounts Payable % % 80,000 100,000 100,000 i) Return on ordinary shareholders' Equity Salaries Payable and other current liabilities 10.000 16,000 12,000 j) Dividend Payout Ratio 0.00% 91,000 104,000 Long-term debt (due in five years) 98,000 k)Earings per Share S S 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 times times 959.000 781,000 644,0001Time interest earned ratio 1,540,000 1,401,000 1,214,000 m) Debt to total assets ratio % 15.70% % SMART TOYS CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 For the following questions, please state year 2019 or 2018 Based on the calculated ratios: Which year did the company collect money faster from the customer? Year Which year did the company have a better position to pay off the short term liabilities Year Sales Less: Sales allowances Net sales Less: Cost of goods sold Gross profit Operating expenses Less: Interest expense Less: Income tax Net income 2019 2018 $ $ 866,000 799,000 13,000 18,000 853,000 781,000 445.000 414,000 408,000 367,000 180,000 190,000 20,000 16,000 30,000 24,000 178,000 137,000