The following information is extracted from the 2019 and 2020 financial report of a business. 2019 2020 Non-current Assets 725,300 Total Assets Non-current liabilities 375,000 468,750 188,400 211,800 206,250 120,000 Net Assets 861,500 276,500 529,400 268,400 Total Revenue Total Expenses 85,600 (1 mark) Which of the following is the correct Profit Margin for the 2020 financial year? 213.55% 274896 031.89% 68.1196 34.53% b) (1 mark) Which of the following is the correct Return on Assets for the 2020 financial year? 37.01% 25.20% 27 48% 21 22% b) (1 mark) Which of the following is the correct Return on Assets for the 2020 financial year? 37.01% 25.20% 27.48% 21.22% 31.15% (1 mark) Which of the following is the correct Debt to Total Assets ratio for the 2020 financial year? 0.39:1 0.61:1 0.94:1 0.32:1 0.38:1 d) (1 mark) Which of the following is the correct current ratio for the 2020 financial year? 0.49:1 2.62:1 0.41:1 2.45:1 0:54:1 d) (1 mark) Which of the following is the correct current ratio for the 2020 financial year? 0.49:1 2.62:1 0.41:1 2.45:1 0.54:1 e) (2 marks) Which of the following transactions can immediately improve the Return on Assets? Borrow a bank loan that is due in 3 years. Owner withdraw cash from the business. Change the useful life of a company car from 7 years to 4 years. Buy equipment on credit. Owner contribute cash to the business. ) (2 marks) Which of the following transactions can immediately improve the profit margin? Assume the company makes profit before the transaction Owner contribute cash to the business. Provide service for cash received in advance. Receive cash for service provided and recorded earlier Adjusting entry to record unpaid wages ) (2 marks) Which of the following transactions can immediately improve the profit margin? Assume the company makes profit before the transaction Owner contribute cash to the business. Provide service for cash received in advance. Receive cash for service provided and recorded earlier. Adjusting entry to record unpaid wages. Pay cash for goods received and recorded earlier (2 marks) Which of the following transactions can immediately improve the Debt to Total Assets Ratio? Owner withdraw cash from the business. Buy supplies using cash Provide services and receive cash Buy a machine on credit Receive cash for services to be provided in the future. h 2 marks) Which of the following transactions can immediately improve the Current Ratio Repay a bank loan that is due in 3 years Use cash to buy supplies Receive cash for service provided and recorded before Borrow a bank loan that is due in 3 years h) (2 marks) Which of the following transactions can immediately improve the Current Ratio? Repay a bank loan that is due in 3 years. Use cash to buy supplies. Receive cash for service provided and recorded before. Borrow a bank loan that is due in 3 years. Buy a company vehicle on credit Please answer all parts of the
