During 2018, Jo Geter, the sole shareholder in Coconut Plantations Pty Ltd, decided to invest in automotive manufacturing equipment to reduce direct labour costs. She decided to fund the investment of $160,000 from retained profits. Financial data (assume average data for balance sheet items) before and after the investment are shown below.

Required
a. Calculate the following relationships based on the above data.

b. Based on the single period results, will Jo be happy with the investment?

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Total assets Total liabilities Shareholders' equity Interest expense Profit before income tax Income tax expense (30 per cent) Profit Before investment $669 210 279 400 389 810 14 000 328 000 98 400 $229 600 After investment $854310 303 950 550 360 18000 336 500 100 950 $235 550