Question
I NEED HELP ASAP !!!!! The following information is extracted from the 2019,2020 and 2021 financial report of a business. 2021($) 2020($) 2019($) Non-current Assets
I NEED HELP ASAP !!!!!
The following information is extracted from the 2019,2020 and 2021 financial report of a business.
2021($) | 2020($) | 2019($) | |
Non-current Assets | 69,000 | 53,000 | 37,000 |
Current Liabilities | 16,000 | 11,000 | 9,800 |
Non-current Liabilities | 32,000 | 33,000 | 23,000 |
Owner's Equity (Ending Balance) | 43,000 | 26,500 | 19,200 |
Total Revenue | 89,000 | 72,000 | 59,000 |
Total Expenses | 42,000 | 46,000 | 32,000 |
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(4 marks) Calculate the ratios and complete the table below. Round your answer to the nearest 0.01% (2dp). Do not include the % symbol. Do not use comma separators. For example, if your answer in decimal is 0.12345 (which equals to 12.35%), 12.35 would be the correct format.
2021
2020
Return on Assets
Answer%
Answer%
Profit Margin
Answer%
Answer%
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(4 marks) Calculate the ratios and complete the table below. Round your answer to the nearest 0.01 (2dp). Do not include any symbol. Do not use comma separators. For example, if your answer in decimal is 0.12345, 0.12 would be the correct format.
2021
2020
Current Ratio
Answer:1
Answer:1
Debt to Total Assets ratio
Answer:1
Answer:1
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(2 marks) Which ONE of the following statements is correct regarding the ratio analysis for the two years?
The business had a higher profit margin in 2020.
The business did not have trouble meeting its short-term debts in 2021 according to the rule of thumb.
The business had trouble meeting its short-term debts in 2020 according to the rule of thumb.
The business used its assets less efficiently in 2021 to generate profit.
The business had a lower risk to survive in the long term in 2021.
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(2 marks) Which ONE of the following transactions can immediately improve the Return on Assets?
Pay $6,500 to suppliers for goods purchased on credit before.
Receive $1,500 cash for services to be provided in the future.
Receive $7,000 cash contributed by the owner.
Purchase equipment for $6,000 on credit.
Borrow $5,000 cash from the bank.
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(2 marks) Which ONE of the following transactions can immediately improve the Current Ratio?
Receive $5,200 cash for services provided and recorded before.
Receive $7,000 cash contributed by the owner.
Repay $4,000 bank loan that due in 3 years' time.
Purchase equipment for $6,000 on credit.
Pay $2,300 annual insurance premium.
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