ALL questions from this section (Total 100 marks) Question No: 1 (25 marks) a. Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below for your answer. 1. Current ratio II. Quick ratio Income Statement 2019 $ "000" 2020 $"000 Balance Sheet 2019 $"000" 2020 $"000" Sales 100 135 Non Current Assets COGS 40 55 FP&E 600 640 Gross Profit 60 80 Current Assets Operating Expenses 20 23 Inventory 40 Profit Before Interest & Tax 40 57 Receivables 30 Interest 10 10 Cash 10 Profit Before Tax 30 47 Total Current Ass 80 82 2852 15 Taxation 9 10 Total Assets 680 722 Profit After Taxation 21 37 Non Current Liabilities Loans 200 200 Current Liabilities Payables Total Liabilities 20 25 220 225 Equity Share Capital 150 150 Retained Earnings 310 347 Total Equity 460 497 Total Liabilities & 680 722 III. Inventory turnover IV. Debt to Equity V. Times interest b. Write a short interpretation of the performance of the company based on the ratios calculated. Use the same blank table provided below for your answer. c. Prepare a common size analysis using the template provided. Use below tables for your answer Financial Analysis Ratio Current ratio Quick ratio Inventory turnover Debt to Equity Times interest Common Size Analysis 2019 2020 Interpretation 2019 2020 3 of 11 Income Statement Sales COGS Gross Profit Operating Expenses Profit Before Interest & Tax