The balance sheet below presents two years accounts. Look at the items and their amounts and see which items should be considered when making business decisions.

Do you identify any ratio calculations that are concerning?

Are there any balances that concern you?

The company wants to declare a special dividend of R60,000 to its shareholders. Is it able to do so? If so, do you think this is a good idea?

Pet Toys Galore Balance sheet as on 31 December 2016 Balance sheet as on 31 December 2015 293.400 293,400 314,700 NON CURRENT ASSETS Property, plant and equipment Current assets Inventory Cash Trade receivable TOTAL ASSETS 100,000 253,400 253,400 341,700 110,000 50,000 181,700 595,100 0 241,700 635,100 200,000 200,000 254.100 200,000 200,000 244,900 Non-current liabilities Long term loan Current liabilities Trade payables Deferred tax payable Bank overdraft TOTAL LIABILITIES 229,100 219,100 25,800 15.000 10,000 454,100 0 444,900 110,000 Share capital Retained earnings TOTAL SHAREHOLDER EQUITY 110,000 71,000 181,000 40,200 150.200 TOTAL LIABILITIES AND EQUITY 635,100 595,100