Question 4 (6 Marks) Calculate a. Liquidity Ratios b. Profitability Ratios c Debt Management Ratios ABC Ltd. Income Statement For the Year Ended December 31, 2018 ABC ud. Balance Sheet As at December 31, 2018 2018 $ 11.296 4.315 165) 10,396 2.450 21.192 Current as Cash and cash equivalents Receivables Allowance for Doubtful Accounts Inventories Other current assets 2018 $ 88,750 50,820 139,570 65,500 74,070 2017 $ 14,862 3,570 1501 8,580 1,850 28.12 Non-current assets Equipment Vehicles Accumulated depreciation Revenues Cash sales Credit sales Total Revenue Cost of goods sold Gross profit Operating expenses Salaries Advertising Office rent Utilities Office Supplies Depreciation Other expenses Total operating expenses Operating profit Operating income Interest Income Interest experses Net Income before Tax Income tax experses Net Income after Tax 51,640 87.500 (17,187) 121,953 150,765 87,500 (19,387) 128,895 157,287 25,300 8,250 8,520 4,600 800 2,200 3,600 53,270 20,800 Totalets Current liabilities Interest payables Account payables Accruals Other current liabilities 600 4,600 2.800 4,355 12.155 788 3,800 2,650 3,955 11,193 800 2,400 19,200 3,840 15,360 Non-current liabilities Note payables 35,000 35,000 47,355 45,000 45,000 56,193 Total liabilities Equity Share capital Retained earnings Profit/floss current year Total Equity Total liabilities and equity 65.000 29,572 15,360 109,932 157,287 65,000 17,500 12,072 94,572 150,765