FOUR The following information has been extracted from the records of TD Projects Ltd: Statement of Comprehensive Income for the year ended 31 December 2021: Revenue (60 % on credit) R 18 000 Cost of revenue (50 % on credit) 9 000 Depreciation 1 400 Profit before Interest and Tax 7 600 Interest paid 1 200 Taxable profit 6 400 Taxes (30%) 2 089 Net profit after tax 4 311 Dividends 1 352 Addition to retained profit 2 959 Statement of Financial Position as at 31 December 2021: Non-current assets Plant and equipment Current assets Stock Debtors Cash 2020 2021 R R 16.968 16 200 5 740 8 450 2 230 808 8 778 25 746 3 232 494 12 176 28 376 Total assets Owners' equity 3 600 3 600 Share capital 12 859 15 818 16 459 19 418 Non-current liabilities Long term loan 6 800 6 300 Short term loan 750 800 7 550 7 100 Current liabilities Creditors 1 737 1 858 Total equity and liabilities 25 746 28 376 [25] Required: 4.1. Calculate and comment on each of the following liquidity ratios for 2020 and 2021: 4.1.1 Current ratio (4) 4.1.2 Acid test ratio (4) 4.2 Calculate each of the following activity ratios: 4.2.1 Stock turnover rate (4) 4.2.2 Debtor collection period (4) 4.2.3 Creditor payment period (3) 4.3 Calculate the solvency ratio for 2020 and 2021 4.4 Calculate each of the following profitability ratios: 4.4.1 Profitability of the business (3) 4.4.2 Profitability of own capital (3) END OF QUESTION PAPER