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1. Calculate the following ratios for Wilson Ltd for the year ended 30 June 2020. (all ratios must be rounded up to 2 decimal places) a) Return on Equity (ROE) b) Asset turnover c) Current ratio d) Debt to equity ratio (8 marks)

Section 2: Analysis and interpretation of financial statements (TOTAL: 20 MARKS) Wilson Ltd., a new medium-sized company operating in the agri-food sector, produces quality prepared food products. The following table illustrates the average performance of other companies in the same sector for 2020. Industry Average Results, 2020- Return on equity (ROE) Asset turnovere Current ratio Debt to equity ratio 27% 2 6.5e 70% le The following information has been extracted from the financial statements for 2020 and 2019 for Wilson Ltd. Net profit for the year ended 30 June Sales revenue for the year ended 30 June Current assets as at 30 June Non-current assets as at 30 June Current liabilities as at 30 June Non-current liabilities as at 30 June 2020 $ 2019 $ 200,000 190,000 2,100,000 1,600,000 801,000 855,000 950,000 703,000 155,000 345,000 660,000 500,000 1. Calculate the following ratios for Wilson Ltd for the year ended 30 June 2020. (all ratios must be rounded up to 2 decimal places) a) Return on Equity (ROE) b) Asset turnover c) Current ratio d) Debt to equity ratio (8 marks)

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