2020 $'000 QUESTION 1: (a) The Balance Sheet of Cally Co as at 31 December 2021 and 31 December 2020: Current Assets Cash Accounts Receivables Long-term Assets: Plant and Equipment at cost Accumulated depreciation 2021 $'000 5 69 89 108 (33) 89 86 88 80 (6) Total Assets Stockholders' equity Common stock, no par Retained earnings Total stockholders' equity 122 19 53 72 127 Current liabilities Accounts payables 17 15 78 Total stockholders' equity and liabilities 89 Income Statement for year ended 31 December 2021: Sales revenue Depreciation expense: Plant and equipment Other expenses Net income Required: 86 $'000 77 (27) (48) 2 Prepare the Cashflow statement (indirect method) for the year ended 31 December 2021. (b) You are presented with the following summarised accounts for Tomato Co, a limited liability company. Income statement for the year ended 30 June 2021 Net sales Cost of goods sold Gross profit Operating expenses Operating income $000 200 (120) 80 (45) 35 Interest expense (3) Income before income taxes 32 Income tax expense (6) Net income 26 Statement of Financial Position as at 30 June 2021 $000 $000 Plant and equipment Equity and liabilities Equity Current liabilities Accounts Payables Accrued Liabilities Long-term Liabilities Bank loans Total liabilities Assets Current assets Inventory Accounts Receivables 30 Cash and bank 292 70 10 Total current assets 110 120 Total Assets 230 30 220 50 80 130 Common stock Retained earnings 58 55 45 Total Stockholders' equity 100 Total Liabilities and Stockholders' equity 230 The ratios for Tomato Co for previous year 2020 are as follows: Rate of return on total assets (%) Asset Turnover ratio Gross profit percentage (%) 13 0.900 42 11 Total assets as at 30 June 2020 ($'000): 170 Profit margin ratio Required: (i) State clearly the formulae used for each of these 4 ratios, and calculate these ratios for the year ended 30 June 2021. (1) Rate of return on total assets (2) Asset Turnover ratio (3) Gross profit percentage (4) Profit margin ratio (4 marks) (ii) Based on the 4 ratios calculated in (a), interpret the performance of Tomato Co in year 2021. as compared against previous year. (6 marks) (TOTAL 20 marks)