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The following information is extracted from the 2019 and 2020 financial report of a business. 2019 2020 Non-current Assets 250,000 350,000 Total Assets 312,500 425,800
The following information is extracted from the 2019 and 2020 financial report of a business. 2019 2020 Non-current Assets 250,000 350,000 Total Assets 312,500 425,800 Non-current liabilities 125,600 132,500 141,200 Net Assets Total Revenue Total Expenses 137,500 80,000 256,800 125,000 41,200 a) (1 mark) Which of the following is the correct Return on Assets for the 2020 financial year? 22.70% 29.36% 35.71% 23.94% 19.68% b) (1 mark) Which of the following is the correct Profit Margin for the 2020 financial year? 32.63% 203.40% 32.96% 22.70% 67.04% c) (1 mark) Which of the following is the correct current ratio for the 2020 financial year? 0.57:1 0.45:1 0.61:1 2.08:1 2.64:1 d) (1 mark) Which of the following is the correct Debt to Total Assets ratio for the 2020 financial year? 0.31:1 0.40:1 0.60:1 0.38:1 0.91:1 e) (2 marks) Which of the following transactions can immediately improve the Current Ratio? Borrow a bank loan that is due in 3 years. Buy a company vehicle on credit. Receive cash for service provided and recorded before. Repay a bank loan that is due in 3 years. Use cash to buy supplies
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