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.

Debit $	Credit $
Cash at Bank	17200
Accounts Receivable	3900
Office Supplies	900
Prepaid Rent	3000
Equipment	60000
Accumulated Depreciation - Equipment		300
Furniture	27000
Accumulated Depreciation - Furniture		450
Accounts Payable		12300
Salary Payable		1350
Interest Payable		150
Unearned Service Revenue		2400
Loan Payable		60000
Owners, Capital		4800
Owners, Drawings	1500
Service Revenue		39600
Rent Expense	2100
Salary Expense	4700
Supplies Expense	150
Depreciation Expense - Building	300
Depreciation Expense - Furniture	450
Interest Expense	150
	121350	121350

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)