Question 5 (Total 20 marks) The following information has been extracted from the financial statements and notes of Pandana Fashions Ltd. Sales revenue Interest expense Income tax expense Profit Dividends Total assets Total liabilities Total equities 2019 $580,000 23,000 44,600 52,500 2,800 540,000 300,00 240,000 2018 $575,000 26,500 53,000 56,100 2,800 555,000 330,000 225,000 Required: A. Calculate the following ratios for 2018 and 2019: (1) profit margin (2) return on assets (ROA) (3) return on equity (ROE) (4) debt ratio (5) times interest earned (10 marks) B. Analyse the company's profitability and financial stability. (5 marks) C. Discuss the general limitations of financial statement analysis. (5 marks) 2010 March 20 ACCY901, Sydney Exam. Trimester 1, 2010 Page 9 of a