C. please assist with this question below!

Advise the directors of Dandy & Grandee Superstores Ltd of strategies that can be implemented to improve the performance of the company.

The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ...... 2019 2018 $'000 $'000 Sales 11,200 9,750 Cost of sales 8,460 6,825 Net profit before tax 465 320 This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April.... 2019 2018 $'000 $'000 $'000 S'000 Assets Non-current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital 800 800 Retained earnings 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft Payables Taxation 110 80 750 690 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: ROCE (capital employed = equity + debentures) Profit/sales Asset turnover Current ratio Quick ratio D&G 30 April 2018 Industry Average 30 April 2018 16.70% 18.50% 3.90% 4.73% 4.29 3.91 2.0 1.9 1.42 1.27 2021/2022-Semester 1 Financial Accounting II Gross profit margin 30.00% 35.23% Accounts receivable collection period 40 days 52 days Accounts payable payment period 37 days 49 days Inventory turnover (times) 13.90 18.30 Gearing 26.37% 32.71% WRITTEN ASSIGNMENT You are required to: A. With the use of FIVE (5) advantages and FIVE (5) disadvantages, discuss the use of ratios in analyzing financial performance. (10 marks)