Health Firsts Group accountant has not completed the financial statements for 30 September 2019. In order to prepare a comparison of the 30 September 2018 financial statements and the 2019 figures, the accountant has provided the following trial balance:

Trial Balance Health First Group 30 September 2019

All amounts are in Rands	Debit	Credit
Share Capital and Premium (Equity)		37 390
Retained earnings (Opening Balance)		38 386
Dividends	2 656
Interest payable		2 100
Accounts Payable		8 350
Accounts Receivable	13 580
Opening Inventory	25 800
Equipment	60 000
Accumulated depreciation Equipment		6 500
Buildings	105 000
Accumulated depreciation - building		15 000
Long term loan		13 500
Bond Payable		46 490
Cash and cash equivalents	12 880
Revenue		118 000
Purchases	38 000
Purchases returns		950
Salaries and wages	18 500
Marketing expense	3 850
Interest expense	6 400
	286 666	286 666

Additional Notes (these have not been accounted for in the trial balance)

1. The buildings are depreciated using a 15-year useful life and the Plant and Equipment using a 10-year useful life on a straight-line basis.

2. Equipment with an original cost of R10 000 purchased on the 1 April 2016 was sold for R9 000 cash. The Equipment was sold on 1 July 2019.

3. Bad debts to be written off amount to 980 (2018:nil).

4. Health First has a closing inventory balance of 26 500 as at 30 September 2019.

5. Three patients have paid R7 200 for surgeries before year end, but the surgical procedures are to be performed in November 2019.

6. Health First has paid an amount of R12 000 in advance, relating to medical insurance for the 1 October 2019 30 September 2010 year.

7. The applicable tax rate is 28%. The taxation expense has not been paid as at 30 September 2019.

Question

a)	Prepare the income statement of Health First Group for the year ended 30 September 2019
		(b)	Calculate the following balances that would appear in the Statement of Financial Position of Health First as at 30 September 2019: Total Assets Total Liabilities
(c)	Calculate the profitability ratios of Health First Group for 2019. Provide commentary as to whether the strategy has started to reap benefits after the first year?