Assignment II 1a. Briefly discuss the content of statement of financial position 5 Marks b. It is widely recognised that in order to succeed, a business must pay regard not only to its profitability but also to its financial stability. Required (i) State briefly what you understand to be the meaning of the terms "profitability" and "financial stability" (3 Marks) (ii) Name three ratios which can be used for measuring profitability and three ratios for measuring financial stability. (3 Marks) c. The figures below relate to Adebowale Ltd for the year ended 31 December 2022 Gross profit Net Profit Turnover As at 31 December 2022 Shareholders' Fund Total Tangible Assets Total Current Assets Current Liabilities Long term loans Inventories Required: N 3,985,000 1,275,000 13,715,000 N 6,675,000 10,040,000 160,000 125,000 3,240,000 95,000 (i) Using the above figures and what can be derived there from, calculate profitability and financial stability ratios. (5 Marks) (ii) Comment on the limitation of use of accounting ratios in financial statements analysis. (4 Marks)