QUESTION 1 HAS TWO PARTS (A, B) FOR A TOTAL OF 15 MARKS. Aplus Pte. Ltd. is a multinational corporation based in Singapore with a subsidiary, Cminus Ltd., operating in Australia. The presentation currency of financial statements prepared by Aplus and the functional currency of Cminus is the Singapore dollar (SGD). The CFO of Cminus needs help in translating its financial statements reported in Australian dollars (AUD) to SGD and to analyze certain financial ratios. Exhibit 1: Cminus Ltd. selected financial data at 31 December 2018 Balance Sheet (AUD thousands) Cash Accounts receivable Inventory Property, plant, and equipment (PPE) Accumulated depreciation Total assets Accounts payable Long-term debt 980 900 1,200 3,000 0 6,080 450 3,000 Income Statement (AUD thousands) Sales Cost of goods sold (COGS) 12,000 9,000 Exhibit 2: Exchange rates applicable to Cminus Ltd. Date Historical, 2018 Average, 2018 Weighted average rate when inventory was acquired 31 December 2018 SGD/AUD 0.968 0.906 0.954 0.971 (1A) Calculate the leverage ratio (total liabilities/total assets) of Cminus after translating its financial statements into SGD. [10 marks] (13) Calculate the inventory turnover ratio (COGS/inventory) of Cminus after translating its financial statements into SGD. [5 marks] QUESTION 1 HAS TWO PARTS (A, B) FOR A TOTAL OF 15 MARKS. Aplus Pte. Ltd. is a multinational corporation based in Singapore with a subsidiary, Cminus Ltd., operating in Australia. The presentation currency of financial statements prepared by Aplus and the functional currency of Cminus is the Singapore dollar (SGD). The CFO of Cminus needs help in translating its financial statements reported in Australian dollars (AUD) to SGD and to analyze certain financial ratios. Exhibit 1: Cminus Ltd. selected financial data at 31 December 2018 Balance Sheet (AUD thousands) Cash Accounts receivable Inventory Property, plant, and equipment (PPE) Accumulated depreciation Total assets Accounts payable Long-term debt 980 900 1,200 3,000 0 6,080 450 3,000 Income Statement (AUD thousands) Sales Cost of goods sold (COGS) 12,000 9,000 Exhibit 2: Exchange rates applicable to Cminus Ltd. Date Historical, 2018 Average, 2018 Weighted average rate when inventory was acquired 31 December 2018 SGD/AUD 0.968 0.906 0.954 0.971 (1A) Calculate the leverage ratio (total liabilities/total assets) of Cminus after translating its financial statements into SGD. [10 marks] (13) Calculate the inventory turnover ratio (COGS/inventory) of Cminus after translating its financial statements into SGD. [5 marks]