Data for White Star Limited is as follows:

Additional information:
Net operating profit after tax is $25 million (2015: $38 million).
1. Use the information above to calculate for 2016 and 2015:

a. Working capital

b. Current ratio

c. Quick ratio

d. Debt-to-equity ratio

e. Return on equity ratio

f. Earnings per share ratio.
2. Identify two warning signals that could have negative implications with respect to the company's ability to generate cash flows to meet its future needs. In each case, explain why the signal you have identified could reflect a cash flow problem.
3. At the annual general meeting of White Star, the managing director, Ms Rose Dawson, made the following statement: 'Recently a number of articles in the financial press have questioned the financial position of our company. This criticism is totally unjustified. Net profit was $25 million and total assets have increased by $160 million. These results show that 2016 was a very successful year for White Star.' Comment on Ms Dawson's statement.

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Current assets Cash Receivables Inventories Total current assets Noncurrent assets Property, plant and equipment Total noncurrent assets WHITE STAR LIMITED BALANCE SHEET AS AT 30 JUNE Total assets Current liabilities Creditors and borrowings Provisions Total current liabilities Noncurrent liabilities Creditors and borrowings Provisions Total noncurrent liabilities Total liabilities Net assets Shareholders' equity Share capital ($1 ordinary shares) Reserves Retained earnings Total shareholders' equity 2016 $m 50 540 450 1040 160 160 1 200 630 15 645 245 10 255 900 300 80 35 185 300 2015 $m 330 310 260 900 140 140 1040 510 10 520 195 15 210 730 310 80 35 195 310