Accounting

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Presented below are summarised data from the balance sheets and income statements of ABC Ltd Balance Sheet: 2006 2005 2004 Current assets 677 891 736 Other assets 2413 1920 1719 Total assets 3090 2811 2455 Current Liabilities 562 803 710 Non-current liab 1521 982 827 Owners' equity 1007 1026 918 Total Liabilities- 3090 2811 2455 & owners' equity ABC Ltd Income statement & other data. 2006 2005 Sales 3050 2913 Operating imcome 335 310 Interest expense 84 65 Income tax expense 59 58 Net profit 192 187 Other data: Average number of- 41.3 46.7 ordinary shares outstanding Total dividends paid 50.0 52.3 For a quite long time the share has had a price/earning ratio of 13, which is within the "normal" range. Required: Calculate relevant ratios for the year 2005 and 2006 in order to evaluate the suitability as an investment for a young, single professional with funds to invest in ordinary shares. State any other information needed to make this investment decision (word limits: 300 excluding calculation)