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please correct the wrong ones Refer the following table Focus Metals Inc Compara

ID: 2336918 • Letter: P

Question

please correct the wrong ones

Refer the following table Focus Metals Inc Comparative Balance Sheet Information November 30 (millions of S) 2017 2016 $ 28 98 280 Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings 434 2,786 2,870 238 1,820 2,380 420 287 84 322 420 770 "90% of the plant and equipment are secured by long-term notes payable Focus Metals Inc Income Statement For Year Ended November 30 (millions of $) 2017 2016 Net sales Cost of goods sold 2,940$2,142 812 1,022 $1,918 $1,330 Gross profit Operating expenses $112 770 $112 637 Depreciation expense Other expenses Total operating expenses 882 749 Profit from operations Interest expense Income tax expense $1,036 170 56 $581 204 60 Profit $810 $317

Explanation / Answer

Total asset :

2017:28+434+84+2786=3332

2016 :98+280+77+2870=3325

Total liabilities

2017:322+1820=2142

2016:238+2380=2618

Total equity:

2017:420+770=1190

2016:420+287=707

2142/3332

.6429 or 64.29%

2618/3325

78.74%

1190/3332

35.71%

707/3325

21.26%

(2870*90%)/2380

1.09

Formula 2017 2016 Debt ratio Total liabilities /Total asset

2142/3332

.6429 or 64.29%

2618/3325

78.74%

Equity ratio Total equity /total asset

1190/3332

35.71%

707/3325

21.26%

pledged assets to secured liabilities

(2870*90%)/2380

1.09