The table below shows the ratios calculated for ABC Ltd. You are required to comment on the profitability, liquidity and solvency positions of ABC Ltd, using the ratios provided. 2018 9.3% Return on assets Current ratio Debt to total assets 2017 5.9% 1.5 39% 1.3 66% Answer: 2 Prepare adjusting entries based on the information provided below at the end of the month. No narrations are required. No. Transaction description 1 All the prepaid insurance expires at the end of the month. The total amount prepaid was $5,300. Earned all the revenue received in advance for the amount of $6,500. No invoice has been received for the electricity used in the month. This expense was not recorded previously. The amount estimated based on previous electricity usage is $3,560. 4 Depreciation expense for the office building for the month is $5,000, which is not yet recorded. 5 Three days' wages for an employee are not yet recorded or paid. The daily wage rate is $300. 3 Answers: No. Account Debit Credit Part A (12 marks) The table below provides the necessary financial information of BEJ Ltd. 2016 1.200.000 Profit for the year ($) Total assets for the year ($) Total current assets ($) Total current liabilities ($) Total non-current liabilities ($) 2018 125,000 1,460,000 650,000 600,000 250,000 2017 87,900 1,350,000 590,000 420,000 200,000 Required: Calculate the three ratios listed below for both 2018 and 2017. You are required to show all necessary workings, including ratio formulas (12 marks) Answers: Return on assets 2018 2017 Current ratio 2018 2017 Debt to total assets ratio 2018 2017