Question B5 Below is the condensed statement of financial position and income statement of Ross Limited: Ross Limited Ross Limited Statement of Financial Position Income Statement 31 December 2021 For the year ended 31 December 2021 (S in million) (S in million) Cash 95 Sales 3,200 Accounts receivable 175 Sales Return and Allowance (114) Inventory 275 Net Sales ? Prepaid expenses 60 Cost of goods sold (2,020) Land 725 Gross profit ? Machine 80 Operating expenses (926) Accumulated depreciation: Machine (10) Operating profit 1,400 Interest expense (40) Profit before taxes 100 Income taxes (28) Accounts payable 120 Net profit 72 Income tax payable 24 Unearned revenue 50 Notes payable (due on 31 Dec 2025) 380 Ordinary shares (par: $1.25 each) 400 Share premium: Ordinary shares 302 Retained earnings 124 1,400 Additional Information: (1) Beginning and ending balances of all assets, liabilities and equity items remained almost constant throughout the year. (2) All sales and sales returns are on credit sales. (3) Market price per share on 31 December 2021 was $1.56 per share. Required: Compute the following for Ross Limited. Round your answers to two decimal places. All answers MUST be expressed in the unit as specified in the question, if any. Show your workings (a) Current Ratio (2 marks) (b) Quick Ratio (2 marks) (c) Gross Profit Rate (in %) (2 marks) (d) Accounts Receivable Tumover Rate (2 marks) (2 marks) Question B5 (continued) (e) Debt Ratio (in %) (1) Return on Equity (%) (g) Price-Earnings Ratio (2 marks) (3 marks) - End of Section B - - END OF PAPER