Question 3: Below is the summarized statement of Financial Position and the statement of Comprehensive income for the year ended 2020 of Al Muada Co. Al Maja Co. Statement of Financial Position Year Ended 31" of Dec 2020 Assets 2020 2019 Non-current assets Land 500,850 850,000 Building 360,000 490,000 Machineries 250,650 792,500 Total Non-Current Assets 1,111,500 2,132,500 Current assets Inventories Receivables Cash Total Current Assets 925,000 235,600 150,000 480,000 970,000 125,500 2,045,000 841,100 Total Assets 3,156,500 2,973,600 Equity and Liabilities Share Capital Other Reserve Retained Earning Redeemable-preference shares 850,000 460,000 300,000 250,000 450,000 370,000 350,000 250,000 Non-Current Liabilities Long Term Borrowing 350,000 473,600 Current Liabilities Trade and Other payable Short Term borrowing 556,500 950,000 300,000 220,000 Total Equity and Liability 3,156,500 2,973,600 Al Maja Co. Statement of Comprehensive Income Year Ended 31" of Dec 2020 2020 2019 Sales Revenue 79,500 75,250 Cost of sales 53,150 50,500 Gross Profit 26,350 24,750 Operating expenses 15,000 12,000 Depreciation 3,500 2.750 Profit before interest and 7, 850 10,000 tax Finance costs 1,500 2,500 Profit before tax 6,350 7,500 Income tax expense 850 1,500 5,500 6,000 Profit from Continuing operations 1,200 0 Loss on discontinued operation Profit for the year 4,300 6,000 Note: Standard Industry ratio for 2020: A- Current ratio 2:1 B- Quick ratio 1:1 - Account Receivable collection 40 days period D- Return on ordinary Share equity 21% Required 1- Compute Current ratio for 2020 and 2019 2- Compute Debt ratio for 2020 and 2019 3- Debt to Equity Ratio 4- Return on Equity 5- Operating Profit