A new managing director of Lets Eat Ltd (a company in the fishing industry) has asked you to analyse and give your views on the relative profitability and liquidity of its two wholly-owned subsidiaries, Canned Fish Ltd and Frozen Fish Ltd. There were no inter-company transactions. Financial statements are given below: ABRIDGED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2022 Canned Fish Ltd 2022 Turnover Cost of sales Gross profit Depreciation (500) (400) Other costs (4 200) (5 800) Profit before tax 2 100 1 400 Frozen Fish Ltd 2022 17 000 (11 200) 5 800 (500) (3 400) 1 900 Capital & reserves Long-term liabilities Current liabilities Overdraft Total equity & liabilities Non-current assets Current assets Inventories Accounts receivable Total assets Required: 10 500 2 100 8 500 3 400 24 500 8 300 9 300 6 900 16 200 24 500 9 900 1 800 8 200 6 700 26 600 9 200 10 200 7 200 17 400 26 600 7 500 200 3 200 4 600 15 500 3 500 1 800 10 200 12 000 15 500 45 000 (38 400) 38 100 (30 500) 7 600 6 800 ABRIDGED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Canned Fish Ltd Frozen Fish Ltd 2021 2021 14 000 (9 400) 4 600 (300) (2 000) 2 300 2021 6 800 0 2 200 2 100 11 100 2 500 2 300 6 300 8 600 11 100 2022 2021 2022 a) Calculate the following ratios for each company: Return on equity Gross profit margin Net profit margin Current ratio Quick ratio (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) b) Comment on the ratios calculated in (a) above. (5 marks)