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The following information is an extract from the financial statements of Easyfly Pty Ltd. 2020 2019 Current Assets 614,250 438,750 Non-current Assets 3,412,500 2,652,000 Current

The following information is an extract from the financial statements of Easyfly Pty Ltd.

2020

2019

Current Assets

614,250

438,750

Non-current Assets

3,412,500

2,652,000

Current Liabilities

331,500

253,500

Non-current Liabilities

1,146,600

1,006,200

Total Revenue

1,092,000

936,000

Total Expenses

750,750

682,500

Required: Answer the following questions in the answer space below. (Note that these questions have been reproduced in the answer space):

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

2020

2019

Profit Margin

(Round your answer to 0.01%)

Current Ratio

(Round your answer to 0.1)

Debt to Total Assets Ratio

(Round your answer to 0.01%)

b) Comment on the Solvency of Easyfly using the answers in part a). (2 marks)

c) Which ratio measures Liquidity? Provide suggestions on how to improve the Liquidity of Easyfly. (2 marks)

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