(a)The summary balance sheet of PA Traders Ltd. is given (10 marks) Summary Balance sheet Particulars Amount Particulars Amount Equity Shares (par value Rs.10 each) 14000000 Fixed assets-cost 21000000 Reserves and surplus 4500000 Less Depreciation -2500000 Profit and Loss A/C 2000000Net Fixed assets 18500000 Provision for Tax 1000000 Sundry edito 4000000 Stock 2500000 Debtors 3000000 Cash 1500000 25500000 25500000 The following additional information is given Sales was 12000000 Cost of sales 10000000 Profit after Tax 2000000 Calculate the following ratios and explain in brief their significance. Current Ratio Liquid Ratio Net Profit ratio Debtors Turnover Cost of sales 10000000 Profit after Tax 2000000 Calculate the following ratios and explain in brief their significance. Current Ratio Liquid Ratio Net Profit ratio Debtors Turnover Average collection period in days. Stock Turnover. Earnings per share. Return on equity (b) Prepare a common size statement for the profit and Loss summary of MN Limited given and give your observations (5 marks) Summary Profit and loss account for the year ended of MN Limited 31-03-2019 31-03-2020 to Sales 3000000 4000000 1500000 2200000 Cost of goods sold Administrative expenses Selling Expenses 500000 550000 300000 420000 Interest 100000 150000 Total Expenses 2400000 3320000 Hyper Return on equity (b) Prepare a common size statement for the profit and loss summary of MN Limited given and give your observations (5 marks) Summary Profit and Loss account for the year ended of MN Limited 31-03-2019 31-03-2020 Sales 3000000 4000000 1500000 2200000 Cost of goods sold Administrative expenses 500000 550000 300000 420000 Selling Expenses interest 100000 150000 Total Expenses 2400000 3320000 Net Profit 600000 680000