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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

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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