Calculate & comment on why key ratios such as working capital, liquidity ratios (current ratio and quick ratio), solvency ratio and profitability ratio (net profit ratio) for each year (2015, 2016, 2017 & 2018) have moved. It is important to emphasise the story of what has happened, rather than simply stating what ratios have changed.

Financial statement:

Answering template for working capital; same should be done for other key ratios.

FINANCIAL STATEMENTS Statement of Profit & Loss Revenue Cost of Sales Gross Profit 2018 2017 8,573,750 9,025,000 8,103,3757,717,500 470,375 1,307,500 2016 9,500,000 7,350,000 2.150,000 2015 10,000,000 7,000,000 3,000,000 Depreciation Expenses Administration Expenses Employee Expenses Occupancy Expenses Profit before Income Tax 300,000 165,000 800,000 885,000 863,254 838,111 610,000 600,000 - 2,102,879 - 1.180,611 - 105,000 895,000 813,700 600,000 263,700 45,000 935,000 790,000 600,000 630,000 Net Profit - 2,102,879 - 1,180,611 263,700 630,000 Balance Sheet 2018 2017 2016 2015 ASSETS CURRENT ASSETS Cash & Cash Equivalents Trade Debtors Inventories Other Current Assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, Plant & Equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS 152,810 50,000 1,800,000 800,000 2,802,810 2,255,689 160,000 1,745,000 800,000 4,960,689 3,436,300 180,000 1,467,000 800,000 5,883,300 3,700,000 200,000 1,042,111 800,000 5,742,111 2,000,000 2,000,000 4,802,810 1,100,000 1,100,000 6,060,689 700,000 700,000 6,583,300 300,000 300,000 6,042,111 830,000 450,000 65,000 1,345,000 700,000 430,000 45,000 1,175,000 620,000 420,000 65,000 1,105,000 600,000 400,000 65,000 1,065,000 LIABILITIES CURRENT LIABILITIES Trade Payables Accrued Expenses Financial Liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade Payables Bank Loan (trucks) TOTAL NON-CURRENT LIABILITIE TOTAL LIABILITIES NET ASSETS 249,000 2,258,889 2,507,889 3,852,889 949,921 210,000 1,622,889 1,832,889 3,007,889 3,052,800 186,000 1,058,889 1,244,889 2,349,889 4,233,411 180,000 300,000 480,000 1,545,000 4,497,111 FINANCIAL PERFORMANCE ANALYSIS 2018 2017 2016 2015 Working Capital Comments