The following financial statements were prepared for the management of Back2Basics Ltd. The statements contain some information that will be disclosed in note form in the general purpose financial statements (GPFS) to be issued.

Additional information

1. The balances of certain accounts at the beginning of the year are as follows.

2. Total assets and total equity at the beginning of the year were $377500 and $180500 respectively.
3. Income tax expense for the year was $31500. Net finance expenses were $3150.

Required
Identify and calculate the ratios that a financial analyst might calculate to give some indication of the:
(a) Entity’s earning ability
(b) Extent to which internal sources have been used to finance asset acquisitions
(c) Rapidity with which accounts receivables are collected
(d) Ability of the entity to meet unexpected demands for working capital
(e) Ability of the entity’s earnings to cover its interest commitments
(f) Length of time taken by the entity to sell its inventories.

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Sales revenue Cost of sales Gross profit Expenses (including tax and finance) Profit BACK2BASICS LTD Statement of profit or loss for the year ended 30 June 2019 $562 500 407 500 155 000 90 000 $65 000