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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

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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 a. (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 % % Profit Margin b. (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 :1 Current Ratio :1 :1 Debt to Total Assets ratio C. (2 marks) Which ONE of the following statements is correct regarding the ratio analysis for the two years? The business used its assets less efficiently in 2021 to generate profit. The business had a higher risk to survive in the long term in 2021. The business did not have trouble meeting its short-term debts in 2021 according to the rule of thumb. The business had a higher profit margin in 2020. The business had trouble meeting its short-term debts in 2020 according to the rule of thumb. d. (2 marks) Which ONE of the following transactions can immediately decrease the Profit Margin? Repay $4,000 bank loan that due in 3 years' time. Adjust for the consumption of supplies after the annual stocktake. Receive $7,000 cash contributed by the owner. Pay $6,500 to suppliers for goods purchased on credit before. Pay $2,300 annual insurance premium. e. (2 marks) Which ONE of the following transactions can immediately improve the Total Debt to Assets Ratio? Pay $2,300 annual insurance premium. Adjust for the consumption of supplies after the annual stocktake. Purchase equipment for $6,000 on credit. Receive $5,200 cash for services provided and recorded before. Receive $7,000 cash contributed by the owner

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