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

Glücklich Golfspieler (GG) is a golf club company headquartered in Germany. The company began its 2013 fiscal year with assets totalling 10 million euro but ended the year (on December 31, 2014) with total assets of 13 million euro. Account balances on December 31, 2014, appear below (in thousands of euro).

Required:
1. Prepare a statement of financial position at December 31, 2014, 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 that of 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 Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation Buildings and Equipment Cash Contributed Capital Goodwill and Intangible Assets Inventory Land Notes Payable, due 2016 Other Long-Term Liabilities Other Noncurrent Assets Prepaid Expenses Profit for the Year (Net Income) Retained Earnings, Jan. 1, 2014 Sales Revenues 1,000 500 900 400 450 2,500 400 250 4,000 5,000 44,000 2,500 5,500 5,800 100 600 1,100