The trial balance of Racer Internet Ltd as at 30 June 2021 is as follows: Cash...

 

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The trial balance of Racer Internet Ltd as at 30 June 2021 is as follows: Cash at Bank Accounts Receivable Prepaid Rent Supplies Equipment Debit ($) Credit ($) 4300 15100 2000 200 20600 Accumulated Depreciation Accounts Payable Salary Payable Unearned Service Revenue 4300 6400 600 500 Loan Payable Racer, Capital 10000 13000 Racer, Drawings 4100 Service Revenue 16600 Salary Expense 3000 Rent Expense 300 Depreciation Expense 400 Supplies Expense 800 Interest Expense 600 51400 51400 Required: a) Calculate the Return on Assets ratio b) Calculate the Current ratio. c) Comment of the company's short-term liquidity d) Calculate the Debt-to-total assets ratio. e) Comment on the company's ability to survive into the future. The trial balance of Racer Internet Ltd as at 30 June 2021 is as follows: Cash at Bank Accounts Receivable Prepaid Rent Supplies Equipment Debit ($) Credit ($) 4300 15100 2000 200 20600 Accumulated Depreciation Accounts Payable Salary Payable Unearned Service Revenue 4300 6400 600 500 Loan Payable Racer, Capital 10000 13000 Racer, Drawings 4100 Service Revenue 16600 Salary Expense 3000 Rent Expense 300 Depreciation Expense 400 Supplies Expense 800 Interest Expense 600 51400 51400 Required: a) Calculate the Return on Assets ratio b) Calculate the Current ratio. c) Comment of the company's short-term liquidity d) Calculate the Debt-to-total assets ratio. e) Comment on the company's ability to survive into the future.

Answer rating: 100% (QA)

Answer Lets go through each of the required calculations and comments for Racer Internet Ltd a Retur... View the full answer