(10) On 31 March 2020, the board of directors had decided to transfer $60,000 from current year's profit to general reserve. Required: Prepare for Bay Limited, (n) statement of profit or loss and other comprehensive income (with expenses classified by function) for the year ended 31 March 2020; and (38 marks) (b) a statement of financial position as at 31 March 2020. (32 marks) (Total 70 marks) ) Question 2 (Total 30 marks) The following summarized data are extracted from the financial statements of Gut Limited ("Gut") and Hey Limited ("Hey) for the year ended 31 December 2019. Ordinary share capital Bank loans (long-term) Non-current assets, at net book value Closing inventory, at cost Trade receivables Trade payables Cash Sales Cost of sales Total expenses Gut S'000 200,000 95,000 180,000 16,500 24,000 32,000 55,000 350,000 205,000 117,000 Hey S'000 200,000 100,000 190,000 75,000 78,000 125,000 10,500 370,000 220,000 94,870 Notes: 1. Gur and Hey produces similar goods in the same industry with comparable size and structure. 2. Both companies purchase and sell goods on credit Required: (a) Compute the following ratios for both Gut Limited and Hey Limited for the year ended 31 December 2019. Gross profit margin: (H) Net profit margin; l) Current ratio, (iv) Quick ratio; and Inventory turnover (in times and in days) [using closing inventory Notes: 1. Formula and working for calculation are required. 2. Round off non-Integers to two decimal places (18 marks) Provide your comments on the relative financial performance of Gut Limited and Hey Limited based on the profitability and liquidity ratios calculated in (a) above (12 marks) (b) (Total 30 marks - END OF PAPER - - Page 4