Financial statements for the year ended 31 December 2020 of two market competitor Southern Ltd and Northern Ltd are given below: Income Statements Sales Cost of sales Gross profit Total expenses: Net profit Southern Ltd ('000) 4027 (2074) 1953 (317) 1636 Northern Ltd ('000) 11953 (9040) 2913 (938) 1975 Statement of Financial Position Southern Ltd ('000) Northern Ltd ('000) Non-Current Assets Property Equipment Total Non-Current Assets 500 250 3570 1800 750 5370 Current Assets Inventories Accounts Receivable Bank Total Current Assets Total Assets 43 20 60 1087 50 40 123 873 1177 6547 Current Liabilities Accounts Payable Tax Payable Total Current Liabilities 5 367 1480 690 372 2170 Long Term Liabilities Loan 200 2000 Capital & Reserves Shareholders' Equity Retained Earnings Total Capital & Reserves Total Capital and liabilities 250 51 3000 -623 301 873 2377 6547 Required: Calculate the following ratios from the Financial Statements of Southern Ltd and Northern Ltd, and write a report commenting on financial performance of the companies which may include a comparison to some industry average ratios. Profitability ratio: gross profit, net profit, ROCE Liquidity ratio: Current ratio, quick ratio Working capital ratio: accounts receivable days, accounts payable days Gearing ratio Industry average ratios: Gross profit: 23% Net profit: 11% ROCE: 5% Current ratio 2:1 Quick ratio 1:1 Gearing: 53% Note: word count for Section-B: 600 words