Anyone can answer me quickly?

Question 2 (20 marks)

Below is the information relating to Travel Accessories Limited ("TAL"):

Income Statement for the year to 31 December 2019 ($ in thousands)

Sales 280,000

Less: Cost of goods sold 160,000

Gross profit 120,000

Less: Depreciation 18,000

Earnings before interest and taxes 102,000

Less: Interest paid 7,200

Earnings before taxes 94,800

Less: Taxes 25,600

Net income 69,200

Additional information: Cash sales for the year ended 31 December 2019 was $7,400,000 Sales, cash sales and net income for year ended 31 December 2018 were $250,000,000, $5,600,000 and $50,800,000 respectively. The number of common stock outstanding during the year is 65,200,000.

Balance Sheets as at 31 December ($ in thousands)

2019 2018 2019 2018

Cash 46,000 44,000 Accounts payable 62,000 60,000

Accounts receivable 88,000 76,000 Long-term debt 88,000 88,000

Inventory 64,000 54 Common stock 140,000 130,000

Total current assets 198,000 174,000 Retained earning 40,000 36,000

Net fixed assets 132,000 140,000 . .

Total assets 330,000 314,000 Total liabilities & equity 330,000 314,000

Required:

(a) Construct the DuPont equation for years ended 2018. (6 marks)

(b) Calculate the following ratios of TAL for years ended 31 December 2019 and 2018 (calculate to two decimal places):

(i) Quick ratio

(ii) Current ratio

(iii) Day sales outstanding

(iv) Fixed assets turnover (8 marks)

(c) Using ratios from part (b) above, comment briefly on TAL's liquidity and asset management. (4 marks)

(d) Calculate the dividend per share for year ended 31 December 2019. (2 marks)