Question 7 (20 Marks) Presented below is the adjusted trial balance of Taylor Investment Advisers as at 30 June 2021. Taylor Investment Advisers Trial Balance As at 30 June 2021 Debit $ Credit $ 32,000 6,500 1,500 5,000 Cash at Bank Accounts Receivable Office Supplies Prepaid Rent Equipment Accumulated Depreciation - Equipment Accounts Payable Salary Payable Interest Payable 145,000 1,250 20,500 2,250 250 Revenue received in advance Bank loan (5 Years) Taylor's, Capital 4,000 100,000 30,000 2,500 44,000 Taylor's, Drawings Service Revenue Rent Expense Salary Expense Supplies Expense Depreciation Expense - Equipment Interest Expense 3,500 4,500 250 1,250 250 202,250 202,250 a) Required: Prepare Taylor Investment Advisers Income Statement for the year ended 30 June 2021. (8 Marks) b) Prepare Taylor Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021. (4 Marks) c) Calculate Taylor Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $177,500) (Round off the answers to the nearest 2 decimal places) (2 Marks) d) (i) Calculate Taylor Investment Advisers Current ratio and the Debt-to-total assets ratio at 30 June 2021. (Round off the answers to the nearest 2 decimal places) (2 Marks) (1) Discuss Taylor Investment Advisers liquidity and solvency positions at 30 June 2021 as compared to 2020 (the Current ratio was 1.92:1 and the Debt-to-total assets ratio was 51.8% at 30 June 2020). (4 Marks)