Liabilities Capital	2019 200 000	2020 300 000
Long term Debt	100 000	225 000
Current Liabilities
Account Payable	100 000	100 000
Other Current Liabilities	50 000	100 000
Total	450 000	725 000

Assets	2019	2020
Fixed Assets	200 000	300 000
Other Non-Current Assets	50 000	75 000
Current Assets
Accounts Receivables	100 000	200 000
Inventory	50 000	100 000
Cash	50 000	50 000
Total	450 000	725 000

Profit & Loss Statement for the years ending 31st December

2019		2020
Sales	200 000	300 000
Less: Cost of Goods Sold	100 000	150 000
(Including Purchases)	(50 000)	(75 000)
Gross Profit	100 000	150 000
Less: Selling & Distribution Expenses	30 000	50 000
Less: Depreciation	10 000	10 000

Earnings before Interest and Tax	60 000	90 000
Less: Interest	10 000	20 000
Earnings before Tax	50 000	70 000
Less: Taxes	20 000	28 000
Earnings after Tax	30 000	42 000

Calculate the Following Ratios for year 2019 and 2020.

important: Explain what each ratio measures and write down the formula.

Important: Interpret the movement from 2019 to 2020 for all Ratios.

1.Current Ratio

2.Operating Profitability Ratio

3.Net Profit Ratio

4.Debt Equity Ratio

5.Return on Equity