Mike is a shareholder in 4You Ltd. He wishes to assess the management effecitivness and the company liquidity in utilising the resources. He has approched you to assist him by analysing the financial statements of 4You Ltd. for the previous two years as follows: 4You Ltd. Income Statement for the year ended 31 Dec 2021 2020 000 000 Continuing Operations Revenue 9,800 9,000 Cost of Sales (5,194) (4,950) Gross Profit 4,606 4,050 Operating expenses (2,450) (944) Distribution costs (980) (1,350) Administrative Expenses Operating profit 1,176 1,756 Finance costs (322) (112) Profit before Tax 854 1,644 Tax (128) (112) Net Profit 726 1,532 4You Ltd. Statement of Financial Position as at 31 Dec 2021 2020 000 000 Non Current Assets Property, Plant and Equipment 16,082 12,400 Current Assets Inventories 1,298 694 Trade receivables 784 810 Cash 0 158 2,082 1,662 Total Assets: 18,164 14,062 Equity & Liabilities Share capital 5,000 5,000 Retained Earnings 7,482 6,756 Total Equity 12,482 11,756 Non Current Liabilities Bank Loan 4,600 1,600 Current Liabilities Trade payables 572 594 Tax liabilities 128 112 Bank overdraft 382 0 Total current liabilities 1082 706 Total Equity & Liabilities 18,164 14,062 Required: To help Mike analyses the performance of 4You Ltd: a) Calculate the following ratios for every year: i) Return on Capital Employed ii) Return on ordinary shareholders funds iii) Gross Profit margin iv) Net Profit margin v) Current Ratio b) Debate the limitations of ratio analysis. c) Comment critically on the financial position of 4You Ltd. and how this has changed over the two year period.