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
Office Supplies		1800
Office Equipment		15 000
Accumulated Depreciation Office equipment			4000
Accounts Payable			4000
Unearned Revenue			5000
Share Capital			12 000
Retained Earnings			4400
Dividends Paid		2500
Service Revenue			3500
Office Supplies Expense		600
Depreciation Expense Equipment		2500
Rent Expense		1900
		32 900	32 900

Required:

a) Prepare Belmore Ltds Statement of Changes in Equity for the year ended 30 June 2020. (4 Marks)

b) Prepare Belmore Ltds Statement of financial position at 30 June 2020. (10 Marks)

c) (i) Calculate Belmore Ltds 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 companys 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)