2.1 Discuss three limitations of using ratio analysis (5) 2.2 You are provided with Lubulu Ltds financial statement as set out below. Statement of Financial position for Lubulu Ltd Asset 2x20 Property, plant and equipment at cost price 1 350 000 Accumulated depreciation (300 000) PPE at carrying value 1 050 000 Investment in shares 825 000 Non- current assets 1 875 000 Inventories 150 000 Tarde receivables 250 000 Cash and cash equivalent 725 000 Current Assets 1 125 000 Total assets 3 000 000 Equity and liabilities Share capital 1 250 000 Retained earnings 500 00 Ordinary shareholders equity 1 750 000 Preference shares 225 000 Shareholders equity 1975 000 Long-term debt 400 000 Deferred tax liability 145 000 Non-current liabilities 545 000 Trade payables 380 000 Dividends payable 100 000 Current liabilities 480 000 Total equity and liabilities 3 000 000 Statement of comprehensive income for Lubulu Ltd 2x20 Turnover 2 450 000 Cost of sales and services rendered (1 450 000) Gross profit 1 000 000 Operating expenses (250 000) Operating profit 750 000 Investment income 80 000 Finance cost (65 000) Profit before tax 765 000 Tax (306 000) Profit after tax 459 000 Preference share dividends (15 750) Attributable earnings 443 250 Ordinary dividend (150 000) Retained earnings (for the year) 293 250 Calculate the following ratios based on the information that has been provided (do not use average ratios): 2.2.1 Gross Profit margin (3) 2.2.2 Interest cover ratio (3) 2.2.3 Return on ordinary shareholders equity (3) 2.2.4 Quick ratio (3) 2.2.5 Return on total assets (after interest and tax) (3) 2.2.6 Current ratio (2) 2.2.7 Debt equity ratio (3) 2.2.8 Comment on the liquidity position of the company (5