Part A: You have been given some financial ratios for Mighty Furniture Limited for the last three years as shown below: 11 Ratios 2018 2019 2020 a. Gross profit % 40% 35% 30% b. Net profit % 12% 9% 6% C. 35 days 50 days 62 days Inventory Turnover periode 32 days 40 days 60 days d. Average settlement period for Accounts receivable e. Current ratio 7:11 5:1 3:11 f. Quick asset ratio 2.3:1 1.5:11 1.1.1 Required: a. Using the ratios above, assess the profitability, liquidity and efficiency of Mighty Furniture for the last three years (2018 to 2020) and identify the causal factors. (6 marks) 1 9 1 11 11 1 1 1 1 9 1 1 1 1 1 1 11 1 1 21 1 b. Suggest two recommendations to the management to address any adverse trends (where applicable) in profitability, liquidity and efficiency of the business. (4 marks) 11 1 1 1 11 1 1 11 1 1 1