a)Current ratio = Current assets/ Current liabilities=3.67 : 1

b)Liquid Ratio= Current assets - Inventory - prepayments/ current liabilities= 2.86 : 1

c)Inventory turnover (times p.a)

Cost of goods sold/ average inventory

50,000/3125= 16 = 365/16 = 22.81 days

d)Average collection period for accounts receivable (365day year)

Average collection receivable x days = 6,000+1,000 = 3,500 x 365 = 21.29

Credit sales260,000

e)Total asset turnover

Total sales=60,000 =1.51 times

Total assets40,000

f)Debt to equity

Total debts= 20,000= 100%

Total Owners Equity20,000

g)Return on equity

Net Profit After Tax - Preference dividend = 3,000 -100 = 0.16

Opening balance of ordinary equity18,500

h)Interest coverage

Earnings before income tax = 5,000 + 1,800 = 6800 = 3.78 times

Interest1,8001,800

i)Earnings per ordinary share

Net profit after tax - preferred dividend = 3,000 -100= 2,900 =0.145 cents

No of ordinary shares20,000 20,000

j)Dividend per share

Ordinary dividend=500+500=0.1 cents per share

No of ordinary shares10,000

k) dividend yield

Dividend per share x 100= 0.1 x 100 = 0.16

Market price of ordinary62.5

Income Statement for the year ended 30 June 2017 $000'S $0DO'S Sales [credit) $ 60,000.00 Less Cost of Goods Sold $ 50,000.00 Gross Profit $ 10,000.00 Less Operating expenses Depreciation $ 2,000.00 Others 1.200.00 Interest $ 1,800.00 -$ 5,000.00 $ 5,000.00 Less Income Tax expense -$ 2.000.00 Net Profit Tax Expense $ 3,000.00 Balance Sheet as at 30 June 2018 Current Assets $ 6,000.00 Accounts Receivable $ 5,000.00 $ 11,000.00 Inventory Non-current Assets Land and Building $ 20,000.00 Plant $ 8,000.00 Accumulated Depreciation- Plant -$ 6,000.00 $ 2,000,00 Motor Vehicle $ 5,000.00 Accumulated Depreciation- Motor Vehicle -$3,000.00 $ 2,000.00 Goodwill $ 5,000.00 $ 29,000.00 TOTAL ASSETS $ 40,000.00 Current Liabilities Accounts payable $ 500.00 Income Tax payable $ 1,000.00 Dividend payable 600.00 Bank overdraft 900.00 $ 3,000.00 Non -Current Liabilities Unsecured Notes (20%] $ 5,000.00 Mortgage - Land & Building $ 12,000.00 $ 17,000.00 Total Liabilities $ 20,000.00 NET ASSETS $ 20,000.00OWNERS EQUITY: Share Capital preference Shares . $1 [59%] fully paid $ 2,000.00 Ordinary Shares - $1 palld to $0.50 cents $ 10,000.00 Retained earnings $ 2.900.00 General reserves $ 5,100,00 $ 20,000.90 Profit & Loss Appropriation statement for the year ended 30 June 2017 Retained Earnings 01/07/2013 5000's $000's Net Profit after tax 1,000 3,000 4,000 Less Dividends provided for: Dividend Payable Preference Shares 100 Dividend Ordinary Shares 500 Interim dividend ordinary Shares paid 500 -1,100 $ 2.900.00 Additional Information 5000'S Inventory 01/07/2018 $1,250 Accounts Receivable $1,000 market price of ordinary shares as at 30/06/2018 $42.5 cents per share Equity 01/07/2018 $18,500 1. Calculate the following performance indicators show the formula used and the calculation for cach: a] Current ratio bj Liquid Ratio c] Inventory turnover (times p.a] dj Average collection period for accounts receivable (365 day year) e] Total asset turnover f Debt to equity g) Return on equity hj Interest coverage i) Earnings per ordinary share 1) Dividend per share K ) dividend yield2. Complete the Client Information Form provided with this assessment for the case study 3. Provide suggestions for the client about their business performance by providing an overview of the business performance and options for continuance of the business for short and long term loan options 4. Assessment of the relevant significant taxation issues 5. Provide details of sources of all advice that you have used, including the relevant authorities and where was sourced from