Reference no: EM13672266

Below are account balances, cash receipts and payments and other data for X Limited, a company that distributes chemical supplies, for the financial year that ended 30 June 2012 and 30 June 2013.

                                                                                          2012        2013

                                                                                             $            $
Accounts payable .................................................................22 000     10500
Accounts receivable ..............................................................11 000     15000
Accumulated depreciation (buildings) ....................................... 119 000    125000
Accumulated depreciation (equipment) ......................................45 000     60000
Buildings ..............................................................................412 000    450000
Cash ...................................................................................16 000     20000
Contributed capital ................................................................300 000    300000
Cost of goods sold .................................................................146 000    150000
Dividends (declared and paid) ..................................................17 000      12000
Equipment ............................................................................245 000     250000
General and administrative expenses .........................................96 000       90000
Income tax expense ...............................................................14 000       20000
Income tax payable ................................................................6 000        5000
Interest expense ....................................................................25 000      30000
Interest payable .....................................................................14 000      10000
Land .....................................................................................35 000     40000
Long-term investments .............................................................35 000     50000
Merchandise inventory ..............................................................62 000     70000
Loans, current portion ..............................................................10 000     15000
Loans, non-current ..................................................................278 000    290000
Prepaid insurance ....................................................................7 000        5000
Retained earnings, beginning balance ..........................................25 000       37000
Sales revenue ........................................................................357 000     400000
Selling expenses .....................................................................47 000       35000
Supplies ................................................................................13 000       15000
Trademarks ............................................................................13 000       15000
Wages payable .......................................................................18 000       14500

You are required to:

a) Prepare a classified statement of financial performance for 2012 and 2013

b) Prepare a classified statement of financial position for 2012 and 2013

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

d) Provide a report to management of X Limited Company giving advice based on your results from the ratios above.