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The adjusted trial balance of Belmore Ltd as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. Belmore
The adjusted trial balance of Belmore Ltd as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. Belmore Ltd Adjusted trial balance 30 June 2020 Debit $ Credit $ Cash at Bank 6400 Accounts Receivable 2200 1800 15 000 Office Supplies Office Equipment Accumulated Depreciation - Office equipment Accounts Payable 4000 4000 Unearned Revenue 5000 12 000 Share Capital Retained Earnings 4400 Dividends Paid 2500 Service Revenue 3500 600 Office Supplies Expense Depreciation Expense - Equipment Rent Expense 2500 1900 32 900 32 900 Required: a) Prepare Belmore Ltd's Statement of Changes in Equity for the year ended 30 June 2020. (4 Marks) b) Prepare Belmore Ltd's Statement of financial position at 30 June 2020. (10 Marks) c) (i) Calculate Belmore Ltd's Current ratio and the Debt-to-total assets ratio at 30 June 2020. (Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Explain your current ratio and how it reflects on the company's ability to meet its obligations. (2 Marks) d) (i) The profit margin for Belmore Ltd for 2019 and 2020 were 18% and 15% respectively. Interpret the meaning of profit margin for 2020. (1 Mark) (ii) Comment on the profitability trends of Belmore Ltd from 2019 to 2020. (1 Mark) (Total 20 Marks)
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