Please assist with the below question.

QUESTION ONE (25 marks) Ella is the owner of a dance studio, teaching Ballet, Spanish and Tap dance. As part of her studio, she also has: a shop where her students can purchase the necessary accessories; and gym equipment available to her students should rehabilitation and development exercises be necessary. Ella approached you for advice concerning her business. She handed you the following annual financial statements: ELLA ENCHANTED STATEMENT OF FINANCIAL POSITION ON 31 DECEMBER 2020 2020 2019 R R R R ASSETS Non-current assets 163 500 161 400 Equipment at cost 120 000 120 000 Accumulated depreciation equipment (25 000) (10 000) Furniture at cost 85 000 60 000 Accumulated depreciation: furniture (16 500) (8 600) Current assets 187 100 233 700 Inventory 30 000 20 000 Trade debtors 6 100 5 700 Bank 151 000 208 000 TOTAL ASSETS 350 600 395 100 EQUITY AND LIABILITIES Capital 250 000 250 000 Non-current liabilities 64 000 86 000 Longterm loan 64 000 86 000 Current liabilities 59 100 Accrued expenses 6 500 9 100 Trade creditors 30 100 50 000 TOTAL EQUITY AND LIABILITIES 350 600 395 100 ELLA ENCHANTED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020 R Total income 450 000 Cost of sales (320 000) Gross profit 130 000 Total expense (65 000) Profit for the year 65 000 Ella also disclosed the following additional information: She sold equipment with a cost price of R20 000 and accumulated depreciation of R4 000 for R7 500 cash during the year. New equipment was purchased for R20 000 to replace the old equipment and paid for by cheque. YOU ARE REQUIRED TO: MARKS Calculate the following ratios for 2020 financial year Current ratio Acid test ratio Gross profit percentage Net profit percentage Return on capital Inventory turnover rate (months) Debtors collection period (days) Creditors payment period (days). 25 Please write down the formula for each ratio before you do the calculation. TOTAL MARKS 25