a. Explain the role of financial ratios in the determination of the health of finances of a construction project-based organisation (300words)

b. Using the financial books issued by the accountant, conduct a thorough determination of the financial health of Clyn Contractors.

page1 Income statement (Profit & Loss) page2 2021 Current assets 2020 Inventories 80.30 72.60 Em m Trade and other receivables 610.90 589.20 Revenue 2,224.50 2,070.60 Current tax assets 14.70 18.70 Operating costs 2,193.70 1,963.50 Cash and cash equivalent 110.50 67.70 Amortisation of acquired intangible assets -7.90 -9.00 816.40 748.20 Other operating income 0.50 23.20 Total assets 1,444.80 1,385.00 share of post-tax results of joint venture 1.60 0.00 Operating profit/(loss) 25.00 121.30 Liabilities Finance income 0.60 3.80 Current Liabilities -17.20 -14.50 Finance costs -42.80 Loans and borrowings -48.30 Profit/(loss) before tax 8.40 110.60 -18.60 Current tax liabilities -19.10 Taxation -22.20 -23.10 -474.40 Trade and other liabilities -480.50 Profit/(loss) for the period -13.80 Provisions -10.80 -10.30 87.50 -546.60 -558.20 Statement of Financial Position (Balance sheet) Non-current liabilities -452.90 -354.60 2021 2020 Total Liabilities -999.50 -912.80 fm fm Net assets 445.30 472.20 Assets Non-current assets Equity 445.30 472.20 Intangible assets 153.40 170.90 Property, plan and equipment 422.00 399.20 Number of shares 72.00 72.00 million Investments in joint ventures 4.60 3.70 Dividends 26.30 20.80 m Deferred tax assets 26.90 39.30 Share price 4.96 9.73 Other assets 21.50 23.70 628.40 636.80