(a) What is the purpose of Ratio Analysis? Your answer should have 2 valid reasons.

(b) Explain four limitations of using ratios to assess business performance.

(c) Mary is a sole trader and owns a computer repair shop. The book-keeper has provided the following information relating to the business. Credit Purchases 425,425 Cash Purchases 30,501 Credit Sales 698,820 Cash Sales 68,451 Inventory at 1 Jan 2022 25,680 Inventory