Question 1: Find the mistakes in the financial statement attached (if any) and fix them :

Question 2: Calculate the ratios

Balance sheet of XY2 Itd. As on 31/3/2020 Assets Liability & Equity Non-current assets Owner's equity Land and building 200000 Capital 150000 Furniture 12000 Net profit 16600 Machine 9600 Non-current liabilities 221600 Loan 60000 Current assets Current liability Inventory 1000 Creditors 8000 Debtors 3000 Bank cash 12000 Total Assets 218000 Total Liabilities 234600 Income statement for XY2 Itd. As for period 1/4/2019 to 31/3/2020 SAR 5000 Sales Other income Total Revenue 5000 30000 Expenses 10,000 cost of goods sold Depreciation Wages 1500 1000 Rent 500 400 Office exp. Total exp. 13400 Net Income 16600 EPS 5.35 Dividends per share 1.75 times times times % Short-term liquidity ratios: Current Ratio = CA/CL Quick Ratio = (CA-Inventory)/CL Cash Ratio = cash/ CL NWC to total assets = NWC (ca-cl)/TA Interval measure = CA/AVERAGE DAILY OPERATING COST ($/365) days Long-term solvency ratios: Total debt ratio = (TA-TE)/TA Debt/Equity = TD/TE Long term debt ratio = LTD/LTD+TEL Times interest earned = EBIT/INTEREST Cash coverage = (EBIT+ DEPRECIATION) / INTEREST Profitability Ratios: Profit margin = net income/ sales Return on assets = net income / total assets Return on equity = Net income/ total equity times times times times times % % %