Comparative figures from the statement of financial position for Border Ltd are shown below: 2017 2016 Current
Question:
Comparative figures from the statement of financial position for Border Ltd are shown below:
2017 | 2016 | ||||
Current assets Cash at bank Accounts receivable Inventory | $ | 30 000 52 000 84 000 | $ | 25 000 54 000 86 000 | |
166 000 | 165 000 | ||||
Non-current assets Term deposit Plant and equipment (net) | 50 000 180 000 | 40 000 160 000 | |||
230 000 | 200 000 | ||||
Total assets | 396 000 | 365 000 | |||
Current liabilities Accounts payable Mortgage | 48 000 20 000 | 52 000 20 000 | |||
68 000 | 72 000 | ||||
Non-current liabilities Mortgage | 120 000 | 100 000 | |||
120 000 | 100 000 | ||||
Total liabilities | 188 000 | 172 000 | |||
Net assets | $ | 208 000 | $ | 193 000 | |
Equity Share capital Retained earnings | $ | 100 000 108 000 | $ | 100 000 93 000 | |
$ | 208 000 | $ | 193 000 |
Required
Prepare common size statements for the company for both years, and comment on what this analysis reveals about Border’s financing policy.
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett