SURAT COMPANY Balance Sheet, December $31,20$X$4$

Assets

Problem $12\mathrm{.}15$

Preparation of Statements from incomplete information....

Non$-$current assets

Alternative to Problem $12\mathrm{.}14$

property, plant and equipment. Non$-$current investments

Current assets

$13,000$

T

Inventories

Trade receivables.

Cash and cash equivalents

Total assets

$1,000$

Equity and Liabilities

$40,000$

Equity

Equity share capital

Other equity.

$9,500$

$7$

Liabilities

Non$-$current liabilities

Long$-$term borrowings..

Current liabilities

$3,000$

$?$

$?$

Short$-$term borrowings.

Trade payables.

Total equity and liabilities.Additional information: $($a$)$ Asset turnover, $2\mathrm{.}3$; $($b$)$ Total liabilities to equity, $1\mathrm{.}5$; $($c$)$ Current ratio, $1\mathrm{.}8$; $($d$)$ Average collection period, $36$ days; $($e$)$ Gross profit ratio, $15$ per cent; $($f$)$ Interest expense consists of interest on long$-$term loans at $10$ per cent per annum and on short$-$term loans at $15$ per cent per annum; $($g$)$ Income tax, $50$ per cent of profit before tax