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Transcription of this question: Visionary Toys (VT)Visionary Toys (VT) produces highly innovative toys for children. VT began operation in January2017 and its unique selling point/proposition (USP) is producing toy parts with a 3D printer. VTuses the reducing balance method of depreciation. 3D technology changes rapidly and thefinancial directors are also considering ways of reducing VTs tax liabilities in 2018. The financialdirector presented financial information for VT at the end of 2017.Table 1: Revenue and expense information for the year 2017 and balance sheet items at31 December 2017Cash$1000Net fixed assets$27 000Interest paid$250Creditors$4000Debtors$3500Accumulated retained profit$10 000- end of 2017Costs of goods sold$7500Sales revenue$27 250Short-term loans$1500Overdraft balance$2000Expenses$7000Share capital$13 500Dividends paid$2500Long-term liabilities$5000Stock of toy parts$4500[Source: International Baccalaureate Organization 2018](a)(c)Define the term unique selling point/proposition (USP).(i) Construct a fully labelled balance sheet for VT for the end of 2017.(ii) Calculate the acid test (quick) ratio for VT for 2018.Explain one reason for VT to use the reducing balance method of depreciation.[2][5][2]

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