The following information is extracted from the 2019,2020 and 2021 financial report of a business.

	2021 ($)	2020 ($)	2019 ($)
Non-current Assets	74,000	49,000	33,500
Current Liabilities	21,000	7,000	6,300
Non-current Liabilities	37,000	21,000	19,500
Owner's Equity (Ending Balance)	43,000	34,500	19,200
Total Revenue	94,000	68,000	55,500
Total Expenses	52,000	42,000	28,500

1. (4 marks) Calculate the ratios and complete the table below. Round your answer to the nearest 0.01% (2dp). Do not include the % symbol. Do not use comma separators. For example, if your answer in decimal is 0.12345 (which equals to 12.35%), 12.35 would be the correct format.

   	2021	2020
   Return on Assets	Answer%	Answer%
   Profit Margin	Answer%	Answer%

2. (4 marks) Calculate the ratios and complete the table below. Round your answer to the nearest 0.01 (2dp). Do not include any symbol. Do not use comma separators. For example, if your answer in decimal is 0.12345, 0.12 would be the correct format.

   	2021	2020
   Current Ratio	Answer:1	Answer:1
   Debt to Total Assets ratio	Answer:1	Answer:1

3. (2 marks) Which ONE of the following statements is correct regarding the ratio analysis for the two years?

   The business had a higher risk to survive in the long term in 2021.

   The business had a higher profit margin in 2020.

   The business used its assets less efficiently in 2021 to generate profit.

   The business had trouble meeting its short-term debts in 2020 according to the rule of thumb.

   The business did not have trouble meeting its short-term debts in 2021 according to the rule of thumb.

4. (2 marks) Which ONE of the following transactions can immediately decrease the Profit Margin?

   Adjust for the consumption of supplies after the annual stocktake.

   Pay $2,300 annual insurance premium.

   Pay $6,500 to suppliers for goods purchased on credit before.

   Repay $4,000 bank loan that due in 3 years' time.

   Receive $7,000 cash contributed by the owner.

5. (2 marks) Which ONE of the following transactions can immediately improve the Total Debt to Assets Ratio?

   Receive $5,200 cash for services provided and recorded before.

   Receive $7,000 cash contributed by the owner.

   Purchase equipment for $6,000 on credit.

   Adjust for the consumption of supplies after the annual stocktake.

   Pay $2,300 annual insurance premium.