Calculate and comment on the efficiency of the business from 2014 to 2016, in terms of: i)  Total Assets, using one relevant ratio ii)  Working Capital, using one relevant ratio
Calculate and comment on the following aspects of the business from 2014 to 2016: i)  the capital structure of the business, using one relevant ratio ii)  the liquidity of the business, using one relevant ratio
Based on your analysis above, recommend two specific strategies which the business can undertake to improve its Return on Equity.

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Financial information for Guam Ltd is provided below. INCOME STATEMENT Sales Revenue Less Cost of Sales Gross Profit Less Operating Expenses Earnings Before Interest and Tax (EBIT) Less Interest Less Tax Net Profit after Tax BALANCE SHEET Cash Accounts Receivable Inventory Total Current Assets Property, Plant and Equipment TOTAL ASSETS Accounts Payable Long-term Loan TOTAL LIABILITIES Total Equity TOTAL LIABILITIES AND EQUITY Additional Information Opening Balances Accounts Receivable Inventory Total Assets 2016 520,000 354,000 166,000 114,000 52,000 6,000 14,000 32,000 2016 40,000 60,000 80,000 180,000 220,000 400,000 50,000 100,000 150,000 250,000 400,000 2013 45,000 110,000 430,000 2015 500,000 350,000 150,000 120,000 30,000 9,000 11,000 10,000 2015 45,000 55,000 90,000 190,000 230,000 420,000 60,000 120,000 180,000 240,000 420,000 2014 480,000 360,000 120,000 80,000 40,000 12,000 10,000 18,000 2014 50,000 50,000 100,000 200,000 240,000 440,000 70,000 140,000 210,000 230,000 440,000 Financial information for Guam Ltd is provided below. INCOME STATEMENT Sales Revenue Less Cost of Sales Gross Profit Less Operating Expenses Earnings Before Interest and Tax (EBIT) Less Interest Less Tax Net Profit after Tax BALANCE SHEET Cash Accounts Receivable Inventory Total Current Assets Property, Plant and Equipment TOTAL ASSETS Accounts Payable Long-term Loan TOTAL LIABILITIES Total Equity TOTAL LIABILITIES AND EQUITY Additional Information Opening Balances Accounts Receivable Inventory Total Assets 2016 520,000 354,000 166,000 114,000 52,000 6,000 14,000 32,000 2016 40,000 60,000 80,000 180,000 220,000 400,000 50,000 100,000 150,000 250,000 400,000 2013 45,000 110,000 430,000 2015 500,000 350,000 150,000 120,000 30,000 9,000 11,000 10,000 2015 45,000 55,000 90,000 190,000 230,000 420,000 60,000 120,000 180,000 240,000 420,000 2014 480,000 360,000 120,000 80,000 40,000 12,000 10,000 18,000 2014 50,000 50,000 100,000 200,000 240,000 440,000 70,000 140,000 210,000 230,000 440,000

Answer rating: 100% (QA)

i Total Assets Efficiency Sales Revenue Total Assets to evaluate this 2014 480000 440000 109 2015 500000 420000 119 2016 520000 400000 13 The asset tu... View the full answer