Glcklich Golfspieler (GG) is a golf club company headquartered in Germany. The company began its 2013 fi

Glücklich Golfspieler (GG) is a golf club company headquartered in Germany. The company began its 2013 fi scal year with assets totaling 10 million euro but ended the year (on December 31, 2013) with 13 million euro of total assets. Account balances on December 31, 2013, appear below (in thousands of euro).

Required:
1. Prepare a statement of financial position at December 31, 2013, using Exhibit 5.12 as a guide.
2. Use an appropriate ratio to compute GG's financing risk. Compare GG's ratio to the 0.20 reported for one of its close competitors. Which company appears more likely to pay its liabilities?
3. Use an appropriate ratio to compute the amount of profit GG earns from each euro of sales. Compare GG's ratio to its competitor, which had a ratio of 0.05. Which company is better able to control its expenses?
4. Use an appropriate ratio to compute GG's efficiency at using assets to generate sales. Compare GG's ratio to the 2.60 reported for its competitor. Which company is more efficient at using its assets to generate sales?

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Accounts Pavable Accounts Receivable Accrued Liabilities 1,000 Contributed Capital 400 Other Non-current Assets 50 Prepaid Expenses 500 900 2,500 5,500 5,800 Goodwill and Intangible Assets Inventory Land Notes Payable, due 2012 Other Long-term Liabilities 400 250 4,000 5,000 44,000 Profit for the Year (Net Income) Retained Earnings, Jan. 1,2013 Sales Revenue 2,500 100 600 Buildings and Equipment Cash 1,100