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The following information is extracted from annual reports of Sunshine Ltd at the end of 2020. 2020 $ 2019 $ Cash assets 22,000 30,000 Accounts

The following information is extracted from annual reports of Sunshine Ltd at the end of 2020.

2020

$

2019

$

Cash assets

22,000

30,000

Accounts Receivable

33,000

40,000

Inventory

35,000

38,000

Land

50,000

45,000

Accounts Payable

18,000

14,000

Short term Loan

27,000

20,000

Non-Current Liabilities

23,000

22,000

Revenue

98,000

105,000

Cost of Sales

55,000

53,000

Gross Profit

43,000

52,000

Other Expenses

31,500

33,000

Profit

11,500

19,000

a) Calculate the following ratios for 2020 (1 decimal place):

  1. Current ratio (2 marks)
  2. Profit margin (2 marks)
  3. Asset turnover (2 marks)
  4. Inventory turnover (2 marks)
  5. Debt ratio (2 marks)

b) Comment on the information about the company provided by each ratio. (5 marks)

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