How to answer the Question(b)

The balance sheet and income statement for DRM Pte Ltd are shown below: DRM Pte Ltd Balance Sheet As at 31 Dec 2020 DRM Pte Ltd Income Statement For the Year Ended 31 Dec 2020 Cash Accounts Receivable Inventories Total Current Assets Net Fixed Assets Total Assets S(*000) 50 300 300 650 750 1,400 Sales Less: Cost of Goods Sold Gross Profit Less : Operating Expenses Operating Profits Less : Interest Expenses Profit before Taxes Less : Taxes (20%) Profit After Taxes $("000) 1.000 300 700 400 300 180 120 24 96 Accounts Payable Long-Term Debt Total Liabilities 300 1.000 1,300 100 Common Stockholders' Equity Total Liabilities & Stockholders Equity 1,400 a) You are given selected financial ratios of DRM Pte Ltd for 2018 and 2019 in the table below. Compute the corresponding ratios for 2020. Round your answers to two decimal places. Ratios DRM Pte Ltd DRM Pte Ltd DRM Pte Ltd 2018 2019 2020 Current Ratio 1.42 1.62 Quick Ratio 0.52 0.64 Gross Profit Margin 0.70 0.70 Operating Profit Margin 0.19 0.24 Net Profit Margin 0.13 0.12 (5 marks) Using the information provided in the table and your answers in part (a), perform a time- series analysis for DRM Pte Ltd in the following areas: Liquidity. ii) Profitability (6 marks) b)