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Question 3 (12 Marks) The following details concern the business of Helena Beauty, who is...

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Question 3 (12 Marks) The following details concern the business of Helena Beauty, who is worried about the profitability and financial situation of her business at 30 June 2018, especially since the bank is requiring repayment of its overdraft. 30 June 2017 30 June 2018 Sales (credit) $60,000 $90.000 Cost of sales 39,000 63,000 All other expenses 12.000 21,000 Cash at Bank 12.000 (18,000) Inventory 18,000 33,000 Accounts Receivable (net) 12.000 30,000 Non-current assets (net) 24,000 48,000 Accounts Payable 6,000 9,000 Non-current liabilities 12.000 Helena Beauty, Capital 60,000 72,000 Inventory at 1 July 2016 was $15,000 Accounts receivable at 1 July 2016 were $10,000 Helena Beauty, Capital as at 30 June 2016, $56,000 nil Calculate the following ratios for 2017 and 2018 (1.5 marks each) Net profit margin Rate of return on owners' equity Current ratio Acid test ratio Gearing Inventory turnover period b) Write a short report about profitability, short-term liquidity and long-term solvency of the business

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