Listed below are the account balances, cash receipts, cash payments and other data for Mycompany Limited, a company that sells building supplies. The accounts are for the financial year's ended 30 June 2014 and 2015:
|
|
2014
|
2015
|
|
$
|
$
|
|
Accounts payable
|
30,000
|
10,500
|
|
Accounts receivable
|
40,000
|
50,000
|
|
Accumulated depreciation (buildings)
|
120,000
|
135,000
|
|
Accumulated depreciation (equipment)
|
45,000
|
60,000
|
|
Buildings
|
430,000
|
460,000
|
|
Cash
|
30,000
|
40,000
|
|
Contributed capital
|
400,000
|
400,000
|
|
Purchase
|
170,000
|
180,000
|
|
Dividends (declared and paid)
|
17,000
|
12,000
|
|
Equipment
|
260,000
|
265,000
|
|
General and administrative expenses
|
96,000
|
90,000
|
|
Income tax expense
|
14,000
|
20,000
|
|
Income tax payable
|
?
|
?
|
|
Interest expense
|
25,000
|
30,000
|
|
Interest payable
|
10,000
|
10,000
|
|
Land
|
35,000
|
40,000
|
|
Long-term investments
|
35,000
|
50,000
|
|
Merchandise inventory
|
60,000
|
70,000
|
|
Loans, current portion
|
30,000
|
22,000
|
|
Loans, non-current
|
278,000
|
270,000
|
|
Prepaid insurance
|
20,000
|
5,000
|
|
Retained earnings, beginning balance
|
25,000
|
60,000
|
|
Sales revenue
|
310,000
|
380,000
|
|
Selling expenses
|
47,000
|
35,000
|
|
Supplies
|
20,000
|
15,000
|
|
Trademarks
|
25,000
|
25,000
|
|
Wages payable
|
17,000
|
9,500
|
Note: Beginning inventory for the financial year ended 30th June 2014 is $ 15,000.
Required:
a) From the above data, prepare a Statement of Financial Performance for 2014 and 2015
b) From the above data, prepare a Statement of Financial Position for 2014 and 2015
c) From the company's financial statements, calculate the following ratios for the two years:-
i) Return on Assets ratio
ii) Return on Equity ratio
iii) Net Margin
iv) Quick ratio
v) Current ratio
vi) Asset turnover ratio
vii) Average settlement period for debtors
viii) Average settlement period for creditors
ix) Interest cover ratio
x) Gross profit margin.