Rush & Reddy Pty Ltd
The balance sheet taken from the companys year- end financials is provided below:
Dec-31
Assets:	2015		2014		2013
Current Assets:
Cash		R122 200		R108 000
Accounts Receivable	R45 000		R35 000		R37 000
Inventory	R17 000		R14 000		R13 000
Other Current Assets		R13 000		R11 000
Total Current Assets		R197 200		R168 000
Long-term Assets:
Property, Plant & Equipment, net		R1 489 800		R50 000
Intangible Assets		R422 500		R450 000
Total Assets	R2 109 500		R668 000		R650 000
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable		R11 000		R9 000
Interest Payable		R1 000		R1 000
Current Portion of Long-Term Debt		R30 000		R0
Income Tax Payable		R37 000		R46 000
Total Current Liabilities		R79 000		R56 000
Long-term Liabilities:
Notes Payable		R492 500		R30 000
Total Liabilities		R571 500		R86 000
Stockholders' Equity
Common Stock		R120 000		R70 000
Additional Paid-in Capital		R1 308 000		R372 000
Retained Earnings		R185 000		R140 000
Treasury Stock		-R75 000		R0
Total Stockholders' Equity	R1 538 000		R582 000		R575 000
Total Liabilities and Stockholders' Equity		R2 109 500		R668 000

Question 1 (20 marks)

Prepare a common size balance sheet to be used in vertical analysis.

Question 2 (10 marks) Calculate the following short-term liquidity ratios for 2015 and 2014:
Current Ratio,	(2)
Quick Ratio,	(2)
Cash Ratio,	(2)
Operating Cash Flow Ratio	(2)
Cash flows from operations were R151,000. and R101,000. for 2015 and 2014, respectively.
Round your answers to two decimal places. Comment on the companys short-term liquidity.