Below are account balances, cash receipts and payments and other data for X Limited, a company that distributes chemical supplies, for the financial year that ended 30 June 2012 and 30 June 2013.

2012 2013

$ $

Accounts payable  22 000 10500

Accounts receivable  11 000 15000

Accumulated depreciation (buildings)  119 000 125000

Accumulated depreciation (equipment)  45 000 60000

Buildings  412 000 450000

Cash  16 000 20000

Contributed capital 300 000 300000

Cost of goods sold 146 000 150000

Dividends (declared and paid) 17 000 12000

Equipment 245 000 250000

General and administrative expenses 96 000 90000

Income tax expense 14 000 20000

Income tax payable 6 000 5000

Interest expense 25 000 30000

Interest payable 14 000 10000

Land 35 000 40000

Long-term investments 35 000 50000

Merchandise inventory 62 000 70000

Loans, current portion 10 000 15000

Loans, non-current 278 000 290000

Prepaid insurance 7 000 5000

Retained earnings, beginning balance 25 000 37000

Sales revenue 357 000 400000

Selling expenses 47 000 35000

Supplies 13 000 15000

Trademarks 13 000 15000

Wages payable 18 000 14500

You are required to:

a) Prepare a classified statement of financial performance for 2012 and 2013

b) Prepare a classified statement of financial position for 2012 and 2013

c) From the company's financial statements, calculate the following ratios for the two years:

i) Return on Assets ratio

ii) Return on Equity ratio

iii) Net Margin

iv) Quick ratio

v) Current ratio

vi) Asset turnover ratio

vii) Average settlement period for debtors

viii) Average settlement period for creditors

d) Provide a report to management of X Limited Company giving advice based on your results from the ratios above.