Please help with solutions to Q1, Q2,Q3,Q4

ASSESSMENT 5: ACCOUNTING AND FINANCIAL MANAGEMENT The following information is provided for Lubners Limited. Consider the information and answer all four questions that follow. CASE STUDY INFORMATION: The following information has been extracted from the accounting records of Lubners Limited on 31 December 2020 2019 Dr Dr 2020 Cr 1 728 000 Cr 1728 000 3 462 964 665 856 2910206 584 640 311 328 290 304 Ordinary share capital Non-current assets inventories Accounts payable Accounts receivable cash Retained earnings ( 1 Jan) Long term Loan Other Current liabilities 832 608 338 688 800 064 362 304 932 256 1057 824 244 276 1 090 944 809 568 4 816 512 4 535 424 2 530 656 2 340 288 7 776 9 504 Total Sales (80% credit sales) Cost of sales (80% credit purchases) Interest income taxation Selling and admin expenses Interest expenses Other expenses 207 009 1 141 344 149 161 263 808 192 159 1 069 056 174 551 274 752 REQUIRED: (25) QUESTION 1 Compile the Statement of Comprehensive Income for the year ended 31 December 2020. (with 2019 comparative figures) (25) QUESTION 2 Compile the Statement of Financial Position as at 31 December 2020. (with 2019 comparative figures) (25) QUESTION 3 Evaluate the performance of the company by calculating and commenting on the following ratios: . . Gross margin Profit margin Return on assets Return on equity Current ratio Acid test ratio . QUESTION 4 (25) REQUIRED: Read the information provided below on a capital acquisition planned by Lubners Limited and advise them whether to undertake the capital expenditure or not. INFORMATION: Lubners Limited operates transport division which offers long haul transport. It has a fleet of trucks which are replaced as the maintenance costs become excessive. One of the trucks needs replacing and Lubners Limited is considering the following purchase: A Volvo F1350 which costs R1 500 000 for the horse and a further R500 000 for a custom made trailer. This truck will have a useful life of five years after which it will be sold for 10% of its total purchase cost. The first alternative is to use this purchase in normal operations in which customers are charged per kilometre transported and the expected net cash revenue in the first year is expected to be R460 000 and this is expected to increase by 10% every year. A second alternative is to use this purchase for a long term contract with an established client. This contract is for a period of five years with annual cash revenues of R580 000 for each of the five years. It is company policy to depreciate vehicles over its useful life on a straight line basis and the cost of capital used to evaluate capital projects is 12%. Internal rate of return is not used in evaluating capital projects