3 [37 marks 55 Minutes] The extracts from comparative statements of Beulaha Limited are presented below. Beulah Limited Statement of profit or loss or the Years Ended 31 December Net sales (all on credit) Expenses Cost of goods sold Selling and administrative Interest expense Income tax expense Total expenses Profit for the period Beulaha Limited Statements of Financial Position 31 December 2020 R500,000 2019 R420,000 315,000 254,000 120,800 114,800 7,500 6,500 20,000 15,000 463.300 390.300 R 36,700 R 29,700 Assets Property, plant and equipment (net) Current assets Inventory Accounts receivable (net) 2020 R423.000 2019 R383,000 Short-term investments Bank balances Total assets 80,000 60,000 85,000 75,000 18,000 15,000 21.000 18.000 R627,000 R551,000 Equity and Liabilities Equity Issued share capital ordinary (R5 state value) R150,000 R150,000 Retained earnings 223.000 200,000 Non-current liabilities Bonds payable Current liabilities Accounts payable South Africa Revenue Service Additional data: The ordinary shares recently sold at R19.50 per share. 8|Page 120.000 80,000 122,000 110,000 12.000 11.000 a. You are required to compute the following ratios for 2020. i. Current ratio. ii. Acid-test ratio. iii. Accounts receivable turnover. iv. Inventory turnover. v. Profit margin. vi. Asset turnover. vii. viii. ix. Return on assets. Return on ordinary shareholders' equity. Earnings per share. x. Price-earnings ratio. xi. Payout ratio. xii. Debt to assets ratio. xiii. Times interest earned. [22 marks] b. You are required to refer to you answers to (a)(i), (a)(ii), (a)(v), (a)(vi), and (a)(ix). Prepare brief comments stating how each of these items supports the solvency and going-concern potential of the of Beulaha Limited. [Note: The Finance Director wishes to use these comments to support a presentation of financial data to its creditors. Therefore, you are to prepare the comments as requested, giving the implications and the limitations of each item separately.] [15 marks]