It has been suggested that ratio analysis is not necessarily the best way of assessing a companys performance. Required: i) Describe TWO (2) items of information which should be looked at to make ratio analysis more meaningful. (2 marks) ii) Explain FOUR (3) limitations of the use of accounting ratios in appraisal of financial performance. (3 marks) d. Below are the financial ratios for the year 2014 for Sounds Limited, a company engaged in the buying and shipment of shea butter products. The ratios for the industry have also been provided. Quick ratio Current ratio Debtors collection period Creditors payment period Inventory holding period Dividend yield Debt to equity Dividend cover Gross profit margin Net profit margin Return on capital employed Net assets turnover Required: Sounds Limited 0.52:1 1.20:1 46 days 70 days 58 days 3.6% 85% 1.4 times 18% 8% 28% 4.2 times Industry Average 0.84:1 1.80:1 41 days 50 days 48 days 9 % 45% 3.4 times 28% 12.8% 14% 1.9 times Provide an assessment of Sounds Limited in comparison with the industry in respect of profitability, liquidity, efficiency and shareholders investment.