ABC Company has prepared its financial statements for the year ended December $31,2021$ as shown

below.

Financial statements $2021$

Balance sheet Dec $3120212020$

In EUR'$000$

Land and buildings $45\mathrm{.}000$

Accumulated depreciation $-10\mathrm{.}0000$

Land and buildings, net $35\mathrm{.}000$

Other long term assets $3\mathrm{.}0003\mathrm{.}000$

Total non$-$current assets $38\mathrm{.}000$

Inventories $20\mathrm{.}50017\mathrm{.}500$

Accounts receivable $7\mathrm{.}5008\mathrm{.}000$

Prepaid expenses $2\mathrm{.}0001\mathrm{.}500$

Cash $2\mathrm{.}500$

Total current assets $29\mathrm{.}500$

Total assets $67\mathrm{.}500$

Share capital $3\mathrm{.}0002\mathrm{.}500$

Retained earnings $25\mathrm{.}400$

Total equity $27\mathrm{.}900$

Bank loan $25\mathrm{.}00020\mathrm{.}000$

Total non$-$current liabilities $25\mathrm{.}00020\mathrm{.}000$

Accounts payable $15\mathrm{.}80015\mathrm{.}300$

Salaries payable $1\mathrm{.}5001\mathrm{.}400$

Other payables $3\mathrm{.}2002\mathrm{.}900$

Total current liabilities $20\mathrm{.}50019\mathrm{.}600$

Total equity and liabilities $67\mathrm{.}500$

Page $3$

Income statement

Year ended Dec $312021$

In EUR'$000$

Revenues $65\mathrm{.}000$

Total revenues $65\mathrm{.}000$

Cost of goods sold $-27\mathrm{.}500$

Salary expenses $-20\mathrm{.}000$

General and administrative expenses $-5\mathrm{.}700$

Depreciation $-5\mathrm{.}000$

Total operating expenses $-58\mathrm{.}200$

Operating income

Interest expenses $-2\mathrm{.}000$

Net income

Statement of changes in equity

Year ended Dec $312021$

In EUR'$000$

Shareholders' equity, Jan $1$

Issuance of ordinary shares

Dividends paid

Net income

Shareholders' equity, Dec $31$

Statement of cash flows

Year ended Dec $312021$

In EUR'$000$

Net income

Adjustments to reconcile net income to cash $2\mathrm{.}900$

Net cash flow from operating activities

Purchases of land and buildings $-15\mathrm{.}000$

Sale of land $3\mathrm{.}500$

Net cash flow from investing activities $-11\mathrm{.}500$

Issuance of ordinary shares

Borrowings from the bank

Dividends $-1\mathrm{.}200$

Net cash flow from financing activities

Change in cash and cash equivalents

Cash on Jan $1$

Cash on Dec $31$

Page $4$

Questions:

A$.$ Fill in the missing numbers in the gray areas

B$.$ Calculate the following ratios for $2021$ and explain what each ratio measures:

o Current ratio

o Debt to assets ratio

o Profit margin

o Return on asset