Subway LTD
	Statement of financial position
	as at 30 June 2017
	2017	2016	2015
Cash	$25 000	$20 000	$18 000
Receivables (net)	50 000	45 000	48 000
Other current assets	90 000	85 000	64 000
Investments	75 000	70 000	45 000
Plant and equipment (net)	400 000	370 000	358 000
	$640 000	$590 000	$533 000
Current liabilities	$75 000	$80 000	$70 000
Long-term debt	80 000	85 000	50 000
Share capital, $10 each	340 000	300 000	300 000
Retained earnings	145 000	125 000	113 000
	$640 000	$590 000	$533 000

Subway LTD
Statement of profit or loss
for the years ended 30 June
	2017	2016
Sales	$740 000	$700 000
Less: Sales returns and allowances	40 000	50 000
Net sales	$700 000	$650 000
Cost of sales	420 000	400 000
Gross profit	$280 000	$250 000
Operating expenses (including income tax)	236 000	218 000
Profit	$44 000	$32 000

Additional information:

1. The market price of Sub Ltds shares was $4.00 at 30 June 2015, $5.00 at 30 June 2016 and $7.95 at 30 June 2017.
2. All dividends were paid in cash.
3. On 1 January 2016, 4000 ordinary shares were issued.

Required:

a) Calculate the ratios listed in the table provided in the next page for Subway Ltd for 2017 and 2016. Type the answer in the below table. Show computations.

Ratio	2017	2016
a. Profit margin
b. Gross profit margin
c. Asset turnover
d. Earnings per share
e. Price-earnings ratio
f. Dividend payout rate
g. Debt to total assets ratio

b) Based on the ratios calculated, provide an overview of the changes in the financial position and operating results from 2016 to 2017.