You are given the following information in relation to Olivet Ltd.

Required:
You are required to comment on the financial position of Olivet Let as at 20X5. Calculate any ratios you feel necessary.

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20x5 2 100 000 60 000 40 000 30 000 10 000 10 000 P&L accounts 20x4 100000 50000 50 000 30 000 20 000 10000 10 000 2 500 12 500 Sales Cost of sales Expenses Dividends Balance b/d 12 500 12 500 20X5 2 31 500 39 500 3 000 74 000 40 000 32 500 25 000 Balance sheets as at 20X4 31 500 20000 3 000 44 500 25 000 2 500 20 000 1 500 118 500 Land Buildings Equipment Investments at cost Stock Debtors Bank 171 500 25 000 7 000 10 000 12 500 75 000 30 000 10 000 2 000 171 500 20000 6 000 Ordinary £1 shares Share premium Revaluation reserve Profit and loss Debentures 10% Creditors Proposed dividend Bank 12 500 50 000 20 000 10 000 118 500