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The following information is extracted from the 2019 and 2020 financial reports of Ali's Actuarial Services. 2019 2020 Cash at Bank Cash at Bank Account

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The following information is extracted from the 2019 and 2020 financial reports of Ali's Actuarial Services. 2019 2020 Cash at Bank Cash at Bank Account Receivables Account Receivables Land 140,000 150,000 700,000 600,000 220,000 Land 132,000 121,000 700,000 600,000 250,000 Building Accumulated depreciation - Building Unearned revenue 120,000 Loan 6 months Building Accumulated depreciation - Building Unearned revenue Loan 6 months Mortgage Capital Service revenue Rent Expense Wages Expense 132,000 88,000 300,000 748,000 196,000 58,000 36,000 Mortgage Capital Service revenue Rent Expense Wages Expense 78,000 250,000 855,000 202,000 60,000 38,000 c) (1 mark) Which of the following is the correct Profit Margin for the 2019 financial year? 52.04% 43.49% 19.39% 229.91% 8.55% d) (1 mark) Which of the following is the correct Profit Margin for the 2020 financial year? 8.55% 51.49% 39.65% 19.39% 229.91% e) (1 mark) Which of the following is the correct Current ratio for the 2019 financial year? 3.285:1 0.65:1 1.28:1 1.32:1 3.6:1 f) (1 mark) Which of the following is the correct Current ratio for the 2020 financial year? 1.28:1 3.285:1 0.65:1 1.45:1 1.32:1 g) (1 mark) Which of the following is the correct Debt to Total Assets ratio for the 2020 financial year? 0.190:1 0.32:1 0.38:1 0.29:1 0.34:1 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. Borrow a bank loan that is due in 3 years. Receive cash for service provided and recorded before. Buy a company vehicle on credit. i) (2 marks) Which of the following transactions can immediately improve the Return on Assets? Owner contribute cash to the business. Change the useful life of a company car from 7 years to 4 years. Buy equipment on credit. Borrow a bank loan that is due in 3 years. Owner withdraw cash from the business. j) (2 mark) Which of the following would apply to the liquidity of the business O Liquidity has decreased over time however is still above the rule of thumb. Liquidity has increased over time however is still below the rule of thumb. Liquidity has remained the same over time so the rule of thumb is irrelevant. Liquidity has decreased over time and is below the rule of thumb. Liquidity has increased over time and is above the rule of thumb

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