Question
Wisdom Learning is an e-learning business that specialises in providing online learning resources in accounting, economics, and marketing management. The adjusted trial balance of Wisdom
Wisdom Learning is an e-learning business that specialises in providing online learning resources in accounting, economics, and marketing management. The adjusted trial balance of Wisdom Learning as at 30 June 2019 as follows.
Wisdom Learning is an e-learning business that specialises in providing online learning resources in accounting, economics, and marketing management. The adjusted trial balance of Wisdom Learning as at 30 June 2019 as follows.
Required: a) Prepare Wisdom Learnings Income Statement for the year ended 30 June 2019. (8 Marks) b) Prepare Wisdom Learnings Statement of Changes in Equity for the year ended 30 June 2019. (4 Marks) c) Calculate Wisdom Learnings Profit Margin and Return on Assets ratios (the total assets at 30 June 2018 was $109000). (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks) d) (i) Calculate Wisdom Learnings Current ratio and the Debt-to-total assets ratio at 30 June 2019. (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Discuss Wisdom Learnings liquidity and solvency positions at 30 June 2019 as compared to 2018 (the Current ratio was 1.65:1 and the Debt-to-total assets ratio was 54.75% at 30 June 2018). (4 Marks) (Total 20 Marks) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Required:
a) Prepare Wisdom Learnings Income Statement for the year ended 30 June 2019. (8 Marks)
b) Prepare Wisdom Learnings Statement of Changes in Equity for the year ended 30 June 2019. (4 Marks)
c) Calculate Wisdom Learnings Profit Margin and Return on Assets ratios (the total assets at 30 June 2018 was $109000). (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks)
d) (i) Calculate Wisdom Learnings Current ratio and the Debt-to-total assets ratio at 30 June 2019. (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks)
(ii) Discuss Wisdom Learnings liquidity and solvency positions at 30 June 2019 as compared to 2018 (the Current ratio was 1.65:1 and the Debt-to-total assets ratio was 54.75% at 30 June 2018). (4 Marks) (Total 20 Marks)
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