Part 1. Using above MYOB, view the Balance Sheet as of 21/06/2017. Open

Compute and interpret for the:

1. Current ratio (current assets/current liabilities)
2. Debt ratio (total liabilities/total assets)
3. Debt-to-equity ratio (total liabilities/total equity)

Use the following format when presenting your answers.

Ratio	Interpretation
Current ratio @
Debt ratio @
Debt-to-equity ratio @

Part 2. Verifying PAYG

You are auditing the bookkeepers work, and you chose five (5) random figures to confirm. Access the Australian Taxation Office (ATO) PAYG calculator here. Indicate whether the computed take home pay per month for each employee is correct or not.

Gross Pay per Month	Take Home Pay per Month	Remarks
Chemist - $4,980.00	3,966.32
General Manager - $ 8,100.00	5,971.67
Factory Worker - $3,500.00	2,996.92
Bookkeeper - $5,250.00	4,143.17
Marketing Manager - $6,500.00	4,961.92

Part 3. The bookkeeper, Amanda Ford, upon her review of the ageing of receivables, recommended the write-off of an account. You as the accountant would have to approve or disapprove this.

You have reviewed the recovery plan documents for this receivable and it shows:

ACCOUNT INFORMATION	DOCUMENT NO. 41
Debtor name	Sophia King
Outstanding amount	$1,399.40 with N30 terms
Number of days outstanding	97
Debtors explanation for not paying (include dates of contact)	1st attempt: unable to make contact 2nd attempt: individual may be officially declaring bankruptcy
Recovery stage (e.g. 90+ days, 60-90 days)	>90 days
Date for review of recovery actions	In 14 days

Below is the recovery plan document detailing the actions taken by the company to recover the debt. Evaluate each action and indicate whether it is correct or not.

RECOVERY PLAN DOCUMENT
Days Overdue	Plan of Action	Remarks
1 day	Emailed and placed a call as a courtesy reminder
30 days	Letter of reminder
60 days	First collection letter notifying intention to take action and review credit terms and place credit on hold
90 days	Letter of demand together with the spreadsheet report for the recovery plan

Having examined and evaluated the information given, you are to decide if it is proper to write-off the Sophia Kings long overdue debt. If you decide to approve the write-off, you must indicate your name on the Approved by field and the date on the corresponding field in the write-off report below:

ACCOUNTS RECEIVABLE WRITE-OFF REPORT

Amount totalling $1,399.40 owed by Sophia King is 97 days due. Recovery and escalation measures have been made but to no avail. The amount is recommended to be written off.

Signed: ____A. Ford____

Approved by: _________ Date: _______________

Essenziale Cosmeticos Balance Sheet As of 21/06/2017 21/06/2017 12:18:31 PM $225,001.00 $225,001.00 Assets Current Assets Cash on Hand Cheque Account Total Cash on Hand Inventory Raw Materials Finished Goods Total Inventory Total Current Assets Total Assets $36,000.00 $47,891.00 $83.891.00 $308,892.00 $308,892.00 $14,599.00 $9,082,00 Liabilities Current Liabilities Trade Creditors A/P Accrual - Inventory GST Liabilities GST Collected GST Paid Total GST Liabilities Total Current Liabilities Total Liabilities $7,116.00 $9,841.00 $ 16,957.00 $40,638.00 $40,638.00 Net Assets $268,254.00 Equity Capital Capital Investment Total Capital Retained Earnings Total Equity $175,000.00 $175.000,00 $93.254.00 $268,254.00