The following information has been extracted from the records of TD Projects Ltd:

Statement of Comprehensive Income for the year ended 31 December 2021:

R

Revenue (60 % on credit) 18 000

Cost of revenue (50 % on credit) 9 000

Depreciation 1 400

Profit before Interest and Tax 7 600

Interest paid 1 200

Taxable profit 6 400

Taxes (30 %) 2 089

Net profit after tax 4 311

Dividends 1 352

Addition to retained profit 2 959

Statement of Financial Position as at 31 December 2021:

2020 2021

R R

Non-current assets

Plant and equipment 16 968 16 200

Current assets

Stock 5 740 8 450

Debtors 2 230 3 232

Cash 808 494

8 778 12 176

Total assets25 746 28 376

Owners' equity 3 600 3 600

Share capital 12 859 15 818

16 459 19 418

Non-current liabilities

Long term loan 6 800 6 300

Short term loan 750 800

7 550 7 100

Current liabilities

Creditors 1 737 1 858

Total equity and liabilities25 746 28 376

Required:

4.1. Calculate and comment on each of the following liquidity ratios for 2020 and 2021:

4.1.1 Current ratio (4)

4.1.2 Acid test ratio (4)

4.2 Calculate each of the following activity ratios:

4.2.1 Stock turnover rate (4)

4.2.2 Debtor collection period (4)

4.2.3 Creditor payment period (3)

4.3 Calculate the solvency ratio for 2020 and 2021

4.4 Calculate each of the following profitability ratios:

4.4.1 Profitability of the business (3)

4.4.2 Profitability of own capital (3)