Question 2 Marks:20 The following financial information relates to Bright Stars Led for the years ended 30 June 2015 and 30 June 2016 Current lite Trade creditors Bank overdraft Short-term loan 2016 18500 82000 56 500 50 000 2015 160 000 110 000 0 50 000 Total equity and flebilleles 2 293 000 2149 000 Statement of Comprehensive Income of Bright Stars Led for the year ended 30 June 2016 2016 2015 Sales 754 000 688 000 Less: Cost of Sales (435 0001 (392 000 Gross Profit 319 000 296000 Add: Other Income 17500 22000 Gross Operating Income 335 500 318 000 Les Operating Expenses 0177 2001 (133 000) Operating Profit 159 300 185 000 Add: Interest income 11 400 11 000 Profit Before Interest Expense 170 700 196 000 Less Interest expense 15 2001 (76001 Net Profit for the Year 165 500 188 400 Additionalinformation . The movement in owner's equity is solely due to net profit for the years The balance for owner's equity 1 at 30 June 2014 was R1 450 500 nore tax and VAT 2.2.1 Using rate analysis, comment on the liquidity of Bright Stars Lid for the 2015 and 2016 financial years. You are only required to calculate the current ratio and the acid test ratio for each financiar. Refer, in particular to the movement in these rules from 2015 to 2016 2015 Statement of Financial Position of Bright Stars Ltd as at 30 June 2016 2016 Assets 141 () 141 Noncurrent assets Land and buildings Plant and equipment Vehicles 1 930 000 1 400 000 420 000 110 000 1 755 000 1275 000 350 000 110 000 Current Inventory Trade debtors Cash and cash equivalente 363000 244000 119000 0 394 000 192 000 104 000 98000 2 149 000 0.22 Shrinkage is one of the fastest growing crimes across the world 2.2.2.1 Novide recommendations on how to minimise shrinkage due to shoplifting 2.2.2.2 Under a perpetual Inventory system, what is the purpose of physical to take your answer should include reference to discrepancies Identified it to take 0.23 Gearing rates are another category of rational 02.11 What do gearing ratio measure Your newer should briefly indicate when a company is considered to be hired! 2.2.3.2 Calevate the total gearing ratio of Bright Stars ud for the 2015 and 2016 financial years. Briefly comment on the movement in this ratio from 2015 to 2016 in the context of the company's financier in the formula for the total gearing rate is on current abilities/total capital employnts | 2.4 Provide one (1) limitation of using published financial statements for ratio analysis 15 2293 000 Total assets Equity and attitles Owner's equity 1 804 500 1639 000 Norrenties Long term loan 100 000 350 000