1. Prepare the Income statement and the balance sheet using the below information. (10 Marks)

Item	Amount 000'
Cost of Goods Sold	12,000
Tax Expense	280
Sales	23,000
Cash	2,000
Ending Inventory	2,000
Accounts Receivable	5,000
Admin Expense	5,000
Depreciation	2,930
Interest Expense	900
Land	23,000
Accumulated Depreciation	11,000
Accounts Payable	7,000
Long Term Loan	6,000
Shares	3,110
Capital	3,000

2. Based on the balance sheet and the income statement prepared according to the above information calculate the following ratios. (10 Marks)

• Current Ratio
• Quick Ratio
• Inventory Turn over times
• Inventory Turn over days
• Receivables Turn over days
• Receivables Turn over days

3. Analyse the answers derived from calculating the ratios (15 Marks)