Dantes Inferno plc specialises in the provision and instillation of fireplaces and central heating systems. The company has applied to the local bank for a loan. You have been asked by the head of the lending department to analyse the financial statement provided for the years ended 31 March 2020 and 2019.

Dantes Inferno plc Statement of Financial Position As at 31 March
	2020	2019
	000	000
ASSETS
Non-current assets
Land and buildings	400	200
Fixtures and fittings	100	100
Total non-current assets	500	300
Current Assets
Inventory	170	150
Accounts Receivable	100	90
Cash	0	50
Total current assets	270	290
Total Assets	770	590
EQUITY AND LIABILITIES
Equity
Ordinary shares 1	300	300
Retained profits	119	87
Total Equity	419	387
Non-current liabilities
Bank Loan (due in 10 years)	200	100
Current liabilities
Bank Overdraft	10	0
Accounts Payable	134	85
Tax payable	7	18
Total current liabilities	151	103
Total Equity & Liabilities	770	590

Dantes Inferno plc Statement of Profit or Loss For the year ended 31 March
	2020	2019
	000	000
Sales	400	440
Cost of Goods sold	285	280
Gross Profit	115	160
Operating Expense	70	47
Operating Profit	45	113
Interest Payable	4	4
Profit before tax	41	109
Tax	7	18
Profit for the year	34	91

Note: the company paid a dividend to ordinary shareholders of 2,000 in 2020 and 4,000 in 2019.

Required:

1. Analyse the companys financial performance. You should calculate and discuss five (5) different ratios that will be useful to the bank in making its lending decision.