The following are account balances of GadgetsCom Pty, Ltd., a company selling gadgets, at the end of financial year 20X1

Accounts ($000)

Cash at bank 168

Inventory 600

Accounts receivable 450

Land 1,516

Buildings &Equipment 2,169

Accumulated depreciation 350

Accounts payable 900

Notes payable (due in 12 months) 250

Bank loan 2,000

Share capital 866

Retained earnings (Ending Balance) 537

Sales 5,500

Cost of goods sold 2,100

Finance costs 250

Sales salaries expense 425

Sales utilities expenses 35

Office salaries expense 825

Office utilities expenses 125

Depreciation expense 100

Income Tax 492

Required:for GadgetsComPty, Ltd.:

a.Prepare classified Income Statement

b.Incorporating the additional information below, calculate the Gross Profit Margin (GPM) and the Profit Margin (PM) ratios and provide your comment on the company's profitability and efficiency.

c.Prepare the Non-current Assets section of the Balance Sheet.

Additional Information

The manager was pleased with the increased sales revenue in the current year. Last year's ratios are GPM 55% and PM 23%. The followingare ratio formula used by the company:

Ratio Method of calculation

Gross Profit Margin Gross Profitx 100=x% ( Sales revenue)

Profit Margin Profit After Taxx 100=x%. (Sales revenue)