FSAQ003 [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 2020 2019 Net sales (all on credit) R500,000 R420,000 Expenses Cost of goods sold 315.000 254.000 Selling and administrative 120,800 114,800 Interest expense 7,500 6,500 Income tax expense 20.000 15.000 Total expenses 463,300 390,300 Profit for the period R 36.700 R 29.700 Beulaha Limited Statements of Financial Position 31 December Assets 2020 2019 Property, plant and equipment (net) R423,000 R383,000 Current assets Inventory 80,000 60,000 Accounts receivable (net) 85,000 75.000 Short-term investments 18,000 15.000 Bank balances 21.000 18,000 R627,000 R551,000 Total assets Equity and Liabilities Equity Issued share capital ordinary (R5 state value) Retained earnings R150,000 223.000 R150,000 200,000 120,000 80,000 Non-current liabilities Bonds payable Current liabilities Accounts payable South Africa Revenue Service Additional data: 122.000 12.000 110,000 11.000 The ordinary shares recently sold at R19.50 per share. a. V. v. You are required to compute the following ratios for 2020. i. Current ratio. . Acid-test ratio. Accounts receivable turnover. iv. Inventory turnover. Profit margin. vi. Asset turnover. Return on assets. viii. Return on ordinary shareholders' equity. ix. Earnings per share. x. Price-earnings ratio. xi. Payout ratio. x. Debt to assets ratio. xiii. Times interest earned. [22 marks] You are required to refer to you answers to (a)(1). (a)(i), (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] b