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You are given the following information in relation to Olivet Ltd. aidall boa yllup Income statement 20X4 20X5 Sales 100000 100000 Cost of sales

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You are given the following information in relation to Olivet Ltd. aidall boa yllup Income statement 20X4 20X5 Sales 100000 100000 Cost of sales 50000 60000 OST 50000 40000 Expenses 30000 30000 20000 10000 Dividends 10000 10000 10000 Balance b/d 2500 12500 12500 12500 Statement of financial position as at 20X4 20X5 Land 21500 31500 Buildings 20000 39500 Equipment 3000 3000 10650 44500 74000 Investments at cost 25000 40000 Inventory 27500 32500 Debtors 20000 25000 Bank 1500 118500 171500 Ordinary 1 shares 20000 25000 Share premium 6000 7000 Revaluation reserve 10000 Profit and loss 12500 12 500 Debentures 10% 50000 75000 Creditors 20000 30000 Proposed dividend 10000 10000 Bank 2000 118500 171500 Required: You are required to comment on the financial position of Olivet Ltd as at 20X5. Calculate any ratios you feel necessary.

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