Company XY is faced with the following balance sheet. Calculate the working capital, quick ratio, and net profit margin and explain these ratios (not only by describing the change in numbers, but what is causing the movements). The following information should guide you in your response, but your response should not be limited to the following factors: The company is experiencing a substantial decline in profitablity driven by increasing operating expenses from increased gas and labour costs.

Statement of Profit & Loss 2018 2016 Cost of Sales Gross Profit 8,573,750 9,025,000 9,500,000 10,000,000 8,103,375 7,717,500 7,350,000 7,000,000 3,000,000 470,3751,307,500 2,150,000 Administration Expenses Employee Expenses Occupancy Expenses Profit before Income Tax 105,000 895,000 813,700 600,000 - 2,102,8791,180,611 263,700 300,000 800,000 863,254 610,000 165,000 885,000 838,111 600,000 45,000 935,000 790,000 630,000 Net Profit 2,102,879 1,180,611 263,700 630,000 2018 2016 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 2,255,689 3,436,300 3,700,000 200,000 1,800,000 1,745,00 1,467,000 1,042,111 800,000 2,802,810 4,960,689 5,883,300 5.742,111 50,000 160,000 180,000 800,000 800,000 800,000 700,000 300,000 300,000 4,802,810 6,060,689 6,583,300 6,042,111 2,000,000 2,000,000 1,100,000 1,100,000 700,0003 CURRENT LIABILITIES Trade Payables Accrued Expenses Financial Liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade Payables Bank Loan (trucks) TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 830,000 700,000 430,000 45,000 620,000 600,000 400,000 65,000 55,000 55,000 1,345,000 1,175000 1,105,000 1,065,000 249,000 2,258,889 2,507,889 | 210,000 186,000 180,000 300,000 480,000 1,622,8891,058,889 1,832,889 1,244,889 3,852,889 3,007,889 2,349,889 1,545,000 949,921 3,052,800 4,233,411 4,497,111