Wong PTY LTD Adjusted trial balance As at 31 October 2019
Account name	Debit	Credit
Cash	$15,400
Supplies	1,550
Equipment	5,000
Accumulated depreciation		40
Accounts payable		2,550
Salaries payable		2,000
Bank loan (non-current)		5,000
Share capital		10,000
Retained earnings		0
Dividends	500
Service revenue		10,600
Salaries expense	7,650
Interest expense	50
Depreciation expense	40
	$30,190	$30,190

Required:

1. Prepare a Profit or Loss Statement (4 marks)
2. Prepare a Balance Sheet (7 marks)
3. Based on the Profit or Loss Statement and Balance Sheet, calculate the following ratios: (4 marks)
   • Return on assets (i.e., net profit/total assets)
   • Return on equity (i.e., net profit/total equity)
   • Current ratio (i.e., current assets/current liabilities)
   • Debt to asset ratio (i.e., total liabilities/total assets)
4. Explain what useful information the ratios in (3) can provide to external users (4 marks)