The following information was taken from the records of FYI Designs Ltd for the years ended 31 December 2019 and 2020. The company is registered with a share capital of 500 000 ordinary shares Information: EXTRACT FROM INCOME STATEMENT 2019 2020 Sales (70 % of all sales are on credit) 600 600 608 820 Cost of sales 400 400 405 880 Profit before tax 154 800 210 000 Income Tax 54 180 73 500 Interest expense 12 000 9750 EXTRACT FROM POST CLOSING TRIAL BALANCE 2019 2020 Ordinary share capital (@ R1.50 per share) 300 000 420 000 Retained income 100 000 180 000 Long term liabilities (15% p.a) 80 000 50 000 Land & buildings 204 560 399 490 Vehicles 122 320 94 320 Equipment 184 540 138 400 Trading inventory 63 350 103 450 Debtors control Cash Bank overdraft Creditors control Accrued expenses SARS (Income Tax) Shareholders for dividends 4 140 (cr) 30 000 64 150 11360- 87 760 16 800 2610 (cr) 54 000 52 650 10 000 90 530 12/50 FINANCIAL RATIOS Current ratio Acid test ratio 2019 2020 0.84 1 111 1 0.38 1 0.47