The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd. 2020 2019...

  

Transcribed Image Text:

The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd. 2020 2019 Current Assets 409,500 292,500 Non-current Assets 2,275,000 1,768,000 Current Liabilities 221,000 169,000 Non-current Liabilities 764,400 670,800 Total Revenue 728,000 624,000 Total Expenses 500,500 455,000 a) Calculate the following ratios for both 2019 and 2020. (6 marks) 2020 2019 Profit Margin (Correct your answer to 0.01%) Current Ratio (Correct your answer to 0.1) Debt to Total Assets Ratio (Correct your answer to 0.01%) b) Comment on the Liquidity of Extreme-Experiences using the answers in part a). (2 marks) c) Which ratio measures Solvency? Provide suggestions on how to improve the Solvency of Extreme-Experiences. (2 marks) The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd. 2020 2019 Current Assets 409,500 292,500 Non-current Assets 2,275,000 1,768,000 Current Liabilities 221,000 169,000 Non-current Liabilities 764,400 670,800 Total Revenue 728,000 624,000 Total Expenses 500,500 455,000 a) Calculate the following ratios for both 2019 and 2020. (6 marks) 2020 2019 Profit Margin (Correct your answer to 0.01%) Current Ratio (Correct your answer to 0.1) Debt to Total Assets Ratio (Correct your answer to 0.01%) b) Comment on the Liquidity of Extreme-Experiences using the answers in part a). (2 marks) c) Which ratio measures Solvency? Provide suggestions on how to improve the Solvency of Extreme-Experiences. (2 marks)

Answer rating: 100% (QA)

Answer 1 profit margin Profit margin profit sales 100 Profit total sales total expenses Profit in 20... View the full answer