Question: Question 2: (15 Marks) The following information has been extracted from the financial statements and notes thereto of Amber Ltd. 2020 2019 Services revenue $

 Question 2: (15 Marks) The following information has been extracted from

Question 2: (15 Marks) The following information has been extracted from the financial statements and notes thereto of Amber Ltd. 2020 2019 Services revenue $ 580 000 $575 000 Interest expense 23 000 26 500 Income tax expense 44 600 53 000 Profit 52 500 56 100 Preference dividends 2 800 2800 Total assets 540 000 555 000 Total liabilities 300 000 330 000 Preference share capital 62 000 62 000 Ordinary share capital 1 10 000 100 000 Retained earnings 68 000 63 000 Required (a) Calculate the following ratios for 2020 (must show the workings) (3.75 x 2 = 7 marks). i. Return on assets ii. Return on ordinary equity. [Answer and show workings here] ii. UI (b) Calculate the following ratios for 2019 and 2020. (3.75 x 2 = 7 marks). 1. profit margin ii. debt ratio [Answer and show workings here]

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