Analyse Truro Ltd Financial Statements using ratio analysis, summarising your findings and make recommendations on the suitability of Truro Ltd as a potential investment. Show your calculations.

Financial Statements of Truro Ltd in 000. 2018 2019 2020 Sales COGS Gross Profit Distribution costs Administrative expenses EBIT Interest Net Profit Tax Profit for the year Dividends Retained profit 3200.00 1600.00 1600.00 320.00 912.00 368 112.00 256 64.00 192.00 96.00 96.00 4800.00 2240.00 2560.00 384.00 1056.00 1120 160.00 960 224.00 736 192.00 544.00 7040.00 3840.00 3200.00 480.00 1216.00 1504 480.00 1024 256.00 768 320.00 448.00 2018 2019 2020 1472 160 1312.00 1904 352 1552.00 4096 1408 2688.00 Non-current assets Fixed assets at cost Accumulated depreciation equipment at net book value Current assets inventory at cost trade receivables Prepayments 128.00 320.00 64.00 288.00 608.00 160.00 960.00 1280.00 192.00 1824.00 2608.00 5120.00 2016.00 Total assets Current liabilities - overdraft - suppliers accruals - taxation payable 64.00 160.00 128.00 64.00 176.00 256.00 320.00 224.00 288.00 480.00 256.00 640.00 320.00 320.00 Non-current liabilities 15% debentures Equity Share capital 1 Retained earnings Total liabilities plus equity 640.00 128.00 1824.00 640.00 672.00 2608.00 640.00 1120.00 5120.00 2019 2020 960 1,024 Cash flows from Operating Activities Profit, after interest, before taxation Adjustments for: add Depreciation Interest add expense 192 1,056 160 480 1,312 2,560 minus Increase in inventories 160 -672 -288 -672 -96 -32 Increase in trade minus receivables minus Increase in prepayments Increase in trade add payables Increase in add accruals 96 32 192 160 1,056 -160 -64 Cash generated from operations Interest paid Taxation paid Dividend paid Net cash from Operating Activities 1,376 -480 -224 -320 -192 640 352 Cash flows from Investing Activities Payments to acquire tangible non-current assets Net cash used in Investing Activities -432 -432 -2,192 Cash flows from Financing Activities Repayment of loan Net cash from Financing Activities -320 -320 0 -112 Net decrease in cash and cash equivalents Cash and cash equivalents at the start Cash and cash equivalents at end -1,840 -176 -64 -176 -2,016