The following information is extracted from the 2019 and 2020 financial reports of Alan's Arborist Services.

2019
Cash at Bank	87,000
Account Receivables	123,000
Land	900,000
Building	250,000
Accumulated depreciation - Building	110,000
Unearned revenue	142,000
Loan 6 months	40,000
Mortgage	200,000
Capital	702,000
Service revenue	260,000
Rent Expense	58,000
Wages Expense	36,000

2020
Cash at Bank	90,000
Account Receivables	121,000
Land	900,000
Building	250,000
Accumulated depreciation - Building	130,000
Unearned revenue	120,000
Loan 6 months	50,000
Mortgage	180,000
Capital	881,000
Service revenue	210,000
Rent Expense	60,000
Wages Expense	40,000

a) (1 mark) Which of the following is the correct Return on Assets for the 2019 financial year?

4.23%

18.46%

5.66%

4.55%

3.88%

b) (1 mark) Which of the following is the correct Return on Assets for the 2020 financial year?

4.52%

14.55%

18.46%

4.23%

4.95%

c) (1 mark) Which of the following is the correct Profit Margin for the 2019 financial year?

19.66%

8.55%

34.04%

229.91%

43.49%

d) (1 mark) Which of the following is the correct Profit Margin for the 2020 financial year?

38.04%

19.66%

8.55%

229.91%

39.65%

e) (1 mark) Which of the following is the correct Current ratio for the 2019 financial year?

1.28:1

0.65:1

1.15:1

3.6:1

3.285:1

f) (1 mark) Which of the following is the correct Current ratio for the 2020 financial year?

3.285:1

1.24:1

4.89:1

6.84:1

5.67:1

g) (1 mark) Which of the following is the correct Debt to Total Assets ratio for the 2020 financial year?

0.15:1

0.0.32:1

0.28:1

034:1

0.190:1

h) (2 marks) Which of the following transactions can immediately improve the Debt to Total Assets Ratio?

Buy a machine on credit.

Buy supplies using cash.

Provide services and receive cash.

Owner withdraw cash from the business.

Receive cash for services to be provided in the future.

i) (2 marks) Which of the following transactions can immediately improve the profit margin? Assume the company makes profit before the transaction.

Adjusting entry to record unpaid wages.

Pay cash for goods received and recorded earlier.

Provide service for cash received in advance.

Owner contribute cash to the business.

Receive cash for service provided and recorded earlier.

j) (2 mark) Which of the following would apply to the liquidity of the business

The percentage of assets financed by creditors rather than shareholders has slightly increased over time.

The percentage of assets financed by creditors rather than shareholders has remained the same over time.

The percentage of assets financed by creditors rather than shareholders has slightly decreased over time.

The percentage of liabilities financed by creditors rather than shareholders has slightly increased over time.

The percentage of liabilities financed by creditors rather than shareholders has slightly decreased over time.