The following financial statements were prepared for the management of Satay Ltd. The statements contain some information that will be disclosed in note form in the general purpose financial statements to be issued.

Required

(a) Identify the ratios that a financial analyst might calculate to give some indication of the following:
i. a company’s earning power ii. the extent to which internal sources have been used to finance acquisitions of assets iii. rapidity with which trade accounts receivable are collected iv. the ability of a business to meet quickly unexpected demands for working capital v. the ability of the entity’s earnings to cover its interest commitments vi. the length of time taken by the business to sell its inventories.

(b) Calculate and interpret each of the above ratios you have identified.

(c) Identify what comparative analysis could be undertaken to better access Satay’s financial performance and position.

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SATAY LTD Statement of financial performance for the year ended 30 June 2025 Revenue (note 2) Expenses, excluding finance costs (note 4) Finance costs Profit before income tax Income tax expense Profit SATAY LTD Statement of financial position as at 30 June Current assets Cash and cash equivalents 2025 Trade receivables Less: Expected credit losses Inventories Total current assets $1 190 700 961 380 8 820 220 500 88 200 $132 300 $52 920 $418 950 26 460 392 490 352_800 798 210 Non-current assets Land 88 200 Building 264 600 Less: Accumulated depreciation 52 920 211 680 Store equipment 66 150