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

WORLDCORP LTD Statement of Profit or Loss for the year ended 30 June 2017
	Revenue (Note 2) Expenses, excluding finance costs (Note 4) Finance costs				$	850 500 686 700     6 300
	Profit before income tax Income tax expense					157 500   63 000
	Profit				$	94 500

WORLDCORP LTD Statement of Financial Position as at 30 June 2017
	Current assets Cash and cash equivalents Trade receivables Less: Allowance for doubtful debts	$	299 250   18 900		$	37 800 280 350
	Inventories					252 000
	Total current assets Non-current assets Land Building Less: Accumulated depreciation		189 000   37 800			570 150 63 000 151 200
	Store equipment Less: Accumulated depreciation		47 250   22 050			25 200
	Total non-current assets					239 400
	Total assets					809 550
	Current liabilities Trade payables Preference dividends payable Ordinary dividends payable Other current liabilities					270 900 3 780 25 200   12 600
	Total current liabilities Non-current liabilities Long-term borrowings (Note 5)					312 480   63 000
	Total non-current liabilities					63 000
	Total liabilities					375 480
	Net assets				$	434 070
	Equity Share capital Retained earnings				$	315 000 119 070
	Total equity				$	434 070

WORLDCORP LTD Statement of Changes in Equity for the year ended 30 June 2017
	Share capital Ordinary: Balance at start of period				$	252 000
	Balance at end of period					252 000
	Preference (Note 6): Balance at start of period					63 000
	Balance at end of period					63 000
	Total share capital				$	315 000
	Retained earnings Balance at start of period Total recognised profit for the period Dividend paid — preference Dividend paid — ordinary				$	53 550 94 500 (3 780 (25 200	) )
	Balance at end of period				$	119 070

Notes to the financial statements
Note 2:	Revenue
	Sales revenue (net)	$850 500
Note 4:	Expenses
	Cost of sales	567 000
	Selling and distribution expenses	89 000
	Administration expenses	30 700
Note 5:	Long-term borrowings
	10% mortgage payable	63 000
Note 6:	Preference shares
	6% preference shares	63 000

Additional information

1.   The balances of certain accounts at the beginning of the year are:

Trade receivables	$315 000
Allowance for doubtful debts	(28 350)
Inventories	220 500

2.   Total assets and total equity at the beginning of the year were $756 000 and $368 550 respectively.

Required

A.   Identify the ratios that a financial analyst might calculate to give some indication of the following:

1.   A company’s earning power

2.   The extent to which internal sources have been used to finance acquisitions of assets

3.   Rapidity with which trade accounts receivable are collected

4.   The ability of a business to meet quickly unexpected demands for working capital

5.   The ability of the entity’s earnings to cover its interest commitments

6.   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 Worldcorp’s financial performance and position.