Talent Learning is an e-learning business that specialises in providing online learning resources in accounting, economics, and marketing management. The adjusted trial balance of Talent Learning as at 30 June 2019 as follows.

	Debit $	Credit $
Cash at Bank	12800
Accounts Receivable	2600
Office Supplies	600
Prepaid Rent	2000
Equipment	40000
Accumulated Depreciation - Equipment		200
Furniture	18000
Accumulated Depreciation - Furniture		300
Accounts Payable		8200
Salary Payable		900
Interest Payable		100
Unearned Service Revenue		1600
Loan Payable		40000
Owners, Capital		12000
Owners, Drawings	1000
Service Revenue		17600
Rent Expense	1400
Salary Expense	1800
Supplies Expense	100
Depreciation Expense - Building	200
Depreciation Expense - Furniture	300
Interest Expense	100
	80900	80900

Required:

a) Prepare Talent Learnings Income Statement for the year ended 30 June 2019. (8 Marks)

b) Prepare Talent Learnings Statement of Changes in Equity for the year ended 30 June 2019. (4 Marks)

c) Calculate Talent Learnings Profit Margin and Return on Assets ratios (the total assets at 30 June 2018 was $71,000) (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks)

d) (i) Calculate Talent Learnings Current ratio and the Debt-to-total assets ratio at 30 June 2019. (Show all calculations, Round off the answers to the nearest 2 decimal places). (2 Marks)

(ii) Discuss Talent Learnings liquidity and solvency positions at 30 June 2019 as compared to 2018 (the Current ratio was 1.81:1 and the Debt-to-total assets ratio was 52.5% at 30 June 2018). (4 Marks) (Total 20 Marks)