(a)[10]
Prepare the income statement covering the year ended 30 June 2015.
(b)[8]
Prepare the statement of financial position as at 30 June 2015.
(c)[4]
Explain why the current ratio matters to a business.
(d(i))[2]
Discuss how this course of action will affect working capital.
(d(ii))[2]
Discuss how this course of action will affect the return on capital employed.
(e)[4]
Advise the directors on whether they should repay the debentures early. Justify your answer.