Question
Extract from the statement of financial position of Brookfield Hardware at December 31, 2026:
| $ |
|---|
| Current assets | |
| Inventory | 90,000 |
| Trade receivables | 56,000 |
| Prepayments | 10,000 |
| Cash | 24,000 |
| Current liabilities | |
| Trade payables | 70,000 |
| Accrued expenses | 12,000 |
| Current portion of bank loan | 18,000 |
| Non-current liabilities | |
| Bank loan | 162,000 |
| Total equity | 524,000 |
Required: Give each ratio to 2 decimal places.
- Working Capital — current assets less current liabilities.
- Current Ratio.
- Acid-Test Ratio — using only cash and receivables, the assets that can quickly become cash.
- Debt-to-Equity — total liabilities divided by total equity.
Statements in this challenge
- Working CapitalNumeric Answer
- Current RatioNumeric Answer
- Acid-Test RatioNumeric Answer
- Debt-to-EquityNumeric Answer
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
How to approach this
IAS 1 — Presentation of Financial Statements
A composite challenge links several statements built from one set of data, so figures flow between them: profit reaches retained earnings, and the closing balances feed the position statement. Complete them in the order the statements depend on each other rather than the order of the tabs.
Common mistakes
- Preparing each statement independently, so the linking figures disagree.
- Carrying a figure forward before finishing the adjustments that change it.
- Reworking a linked figure in one statement without updating it in the others.
Further readingIAS 1: what goes where in a full set of statements