(a)[7]
Prepare the income statement for M Limited for the year ended 30 November 2021.
(b)[5]
Prepare the statement of changes in equity for M Limited covering the year ended 30 November 2021.
(c)[3]
Calculate the liquid (acid test) ratio for M Limited at 30 November 2021. Give your answer to two decimal places.
(d)[5]
Advise Emily whether the purchase of the equipment should be financed by issuing additional ordinary shares or by arranging a bank overdraft. Justify your answer.