Students are required to answer all four. Question 4: (6 marks) Alba Lid decides to expand its operations by applying for an additional loan of $600 000. As a result, revenue from ordinary activities is expected to increase by $90 000. Financial data (assume average balances) before and after expansion include: Before expansion After expansion Total assets (average) $3 000 000 $3 600 000 Total liabilities 1 400 000 Average shareholders' equity 2 200 000 2 200 000 Revenue fram ordinary activities 030 000 Interest expense Profit before income tax 540 000 550 000 Income tax expenses (20 per 162 000 165 000 cent) Net Profit After Tax $378 000 305 000 Required: Calculate the following: Before After ROA ratio ROE ratio Debt to total assets ratio Would shareholders be happy with the expansion plans? Formulas ROA ratio = Net Profit ROE ratio= Net Profit After tax Debt to Asset ratio = Total After Tax / Total Assets Average shareholders' equity Lishilties / Total Assets Straight-line depreciation Depreciation = [Costs - Residual Value) / Useful Life Diminishing balance Depreciation Rate = 1 -(Residual Value/Costs) Th JD Depreciation rate = 1 - Units of-production: Expenses per Unit = (Costs - Residual Value) / Total No of Units Depreciation = Expenses per Unit x No of Units per your