Statement of profit or loss for the year ended 31 December 2019: 2019 2018 Sales 80 000 120 000 less: Cost of sales Opening inventory 25 000 22 500 Add: Purchases 50 000 91 000 75 000 113 500 Less: Closing inventor - 15 000 -60 000 -17 500 -96 000 Gross profit 20 000 24 000 Less: Depreciation 1 000 3 000 Other expenses 90 000 -10 000 6 000 -9 000 Profit for the year 10 000 15 000 Statement of financial position as at 31 December 2019 2019 2018 Non-current assets Equipment at cost 10 000 20 000 Accumulated depreciation -8 000 -6 000 2 000 14 000 Current assets Inventory 15 000 17 500 Receivables 25 000 20 000 Bank 5 000 45 000 2 500 40 000 47 000 54 000 42 000 44 000 Equity: Capital Profit for the year Drawings 38 000 10 000 -6 000 36 000 15 000 -7 000 Current liabilities: Accounts payable 5000 47 000 10 000 54 000 Calculate: Profitability 2x ratios, Liquidity 2x ratios, Longterm solvency/debt ratios Discuss how PROFITABILITY, LIQUIDITY and LEVERAGE can be improved |