This assessment should indicate to us that you have a good understanding of the finance, business form, and management of a business in total. SSF Limited operates in the manufacturing industry. The company constructs car parts and protective structures for motor vehicles in homes, large offices, and factories. The company was established in 1998 by entrepreneur, Sam Sithole. It developed through aggressive marketing and has branches throughout RSA. After a brief listing on the development Capital Market, it obtained a listing on the main board of the JSE Securities Exchange in 2011. The summarised balance sheet and income statement for the financial year ended 30 September 2019 have been obtained for analysis. The dividend paid during the financial year amounted to R 50 000. SSF Limiteds Statement of comprehensive income for the year ended 30 September 2019. 2019 2020 Revenue 1 000 000 R 1 700 000 Less: Cost of sales 400 000 1 000 000 Gross profit 600 000 700 000 Less: Operating expenses Selling expense 50 000 R 70 000 General and administrative expenses 60 000 120 000 Lease expense 10 000 40 000 Depreciation expense 50 000 100 000 Less: Total operating expense 170 000 R 330 000 Profit from operations (EBIT) 430 000 370 000 Less: Finance cost 120 000 70 000 Net profit before tax R 310 000 R 300 000 Less: Income tax expense 93 000 90 000 Profit for the year R 217 000 R 210 000 SSF Limiteds Statement of financial position as at 30 September 2019. 2019 2020 ASSETS Non-current assets Plant and equipment 1 050 000 1 200 000 Property and machinery 800 000 850 000 Furniture and fixtures 220 000 300 000 Vehicles 80 000 100 000 Other non-current assets 50 000 50 000 Total gross non-current assets (at cost) 2 200 000 2 500 000 Less: Accumulated depreciation 1 200 000 1 300 000 1 000 000 1 200 000 Current assets Inventory 900 000 600 000 Trade receivables 500 000 400 000 Cash 500 000 1 000 000 1 900 000 2 000 000 TOTAL ASSETS 2 900 000 3 200 000 EQUITY & LIABILITIES Equity Share capital 600 000 600 000 Retained earnings 500 000 600 000 Total equity 1 100 000 1 200 000 Non-current liabilities Long-term borrowings 400 000 600 000 Current liabilities Trade payables 500 000 700 000 Short-term borrowing 700 000 600 000 Accruals 200 000 100 000 1 400 000 1 400 000 Total equity and liabilities 2 900 000 3 200 000 REQUIRED: Total 80 marks Section A Analyse the financial statement provided, and: (50) 1. Calculate at least 6 ratios 2. Explain why you used the specific ratios 3. Interpret the calculations made 4. Comment on the liquidity of the company based on your calculations 5. Do a budget for 2021. Section B (20) 6. Elaborate on the form of business used 7. Advantages / disadvantages of the business form in question 8. Do a comparison with one other business form. Section C (10) 9. Provide an organogram indicating the management structure of a business with this business form.