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The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd. 2020 2019 Current Assets 409,500 292,500 Non-current Assets 2,275,000 1,768,000 Current

The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd.

2020

2019

Current Assets

409,500

292,500

Non-current Assets

2,275,000

1,768,000

Current Liabilities

221,000

169,000

Non-current Liabilities

764,400

670,800

Total Revenue

728,000

624,000

Total Expenses

500,500

455,000

Required: Answer the following questions in the spaces provided below:

a) Calculate the following ratios for both 2019 and 2020. (6 marks)

2020

2019

Profit Margin

(Correct your answer to 0.01%)

Current Ratio

(Correct your answer to 0.1)

Debt to Total Assets Ratio

(Correct your answer to 0.01%)

b) Comment on the Liquidity of Extreme-Experiences using the answers in part a). (2 marks)

c) Which ratio measures Solvency? Provide suggestions on how to improve the Solvency of Extreme-Experiences. (2 marks)

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