Exercise 19.6 Profitability and financial stability analysis The following information has been extracted from the financial statements and notes thereto of Bass and Dide Ltd, consultants. 2023 2022 Services revenue $ 290 000 $ 287 000 Interest expense 11 500 13 250 Income tax expense 22 300 26 500 Profit 26 250 28 050 Preference dividends 1 400 1 400 Total assets 270 000 277 500 Total liabilities 150 000 165 000 Preference share capital 31 000 31 000 Ordinary share capital 55 000 50 000 Retained earnings 34 000 31 500 Required (a) Calculate the following ratios for 2023: i. return on assets ii. return on ordinary equity. (b) Calculate the following ratios for 2022 and 2023: profit margin i. ii. debt ratio iii. times interest earned. (c) Analyse the company's profitability and financial stability.