ANSWER ONLY, (F), (G),(H), (I) Thanks. Sandhill NV\'s comparative statements of

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ANSWER ONLY, (F), (G),(H), (I)

Thanks.

Sandhill NV's comparative statements of financial position are presented below SANDHILL NV Statements of Financial Position December 31 2017 2016 Land Buildings Accumulated depreciation-buildings Inventory Accounts receivable Cash 19,870 69,790 26,290 69,790 (15,050) (10,630) 10,190 22,150 4,170 111,120 75,830 22,720 12,570 111,120 7,440 23,860 3,540 120,290 68,060 21,570 30,660 120,290 Total Share capital-ordinary Retained earnings Accounts payable Total Sandhill's 2017 income statement included net sales of 115,320, cost of goods sold of 59,600, and net income of 15,060 Compute the following ratios for 2017, (Round all answers to 2 decimal places, e.g. 1.64, or 1.64% .) (a) Current ratio (b) Acid-test ratio (c) Accounts receivable turnover (d) Inventory turnover (e) Profit margin (f) Asset turnover (g) Return on assets (h) Return on ordinary shareholders' equity (i) Debt to assets ratio times times times

Explanation / Answer

(f) Asset turnover = Net Sales/Average Total Assets = $ 1,15,320 / $ 1,15,705 = 1.00 Working: Net Sales = $ 1,15,320 Average total assets = (111120+120290)/2 = $ 1,15,705 (g) Return on Assets = Net Income/Average Assets = $     15,060 / $ 1,15,705 = 13.02% Working: Net Income = $     15,060 Average total assets = $ 1,15,705 (h) Return on ordinary shareholder's Equity = Net Income/Average Ordinary shareholder's Equity = $     15,060 / $ 94,090 = 16.01% Working: Beginning Ordianry shareholder's Equity $ 1,20,290 - $ 30,660 = $     89,630 Ending Shareholders Equity $ 1,11,120 - $ 12,570 = $     98,550 Total $ 1,88,180 Average ordinary shareholders equity $     94,090 (i) Debt to Assest Ratio = Total Debt/Total Assets = $     12,570 / $ 1,11,120 = 11.31% Working: for 2017: Total Assets $ 1,11,120 Total Liabilities $     12,570

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