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