The following information has been extracted from the financial statements and notes thereto of Bass and Dide Ltd, consultants.

Required

(a) Calculate the following ratios for 2020:

i. return on assets 

ii. return on ordinary equity.

(b) Calculate the following ratios for 2019 and 2020:

i. profit margin 

ii. debt ratio

iii. times interest earned.

(c) Analyse the company’s profitability and financial stability.

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Services revenue Interest expense Income tax expense Profit Preference dividends Total assets Total liabilities Ordinary share capital Retained earnings Preference share capital 2020 2019 $580 000 $575,000 23 000 26500 44 600 53000 52 500 56100 2800 2800 540 000 555 000 300 000 62 000 110 000 68 000 330000 62000 100000 63 000