Perform an analytical review (ratio analysis) comparing the financial statements for 2022 and 2021 and identify the key financial ratios and the key accounts that the audit team should pay greater attention to. Explain why.

  

Assets Dream Rock Watches Ltd Statement of Financial Position as on 30 June Current assets Cash Trade receivables Inventories Other receivables Total current assets Non-current assets Property, plant and equipment Intangible Assets Total non-current assets Total assets Liabilities Current liabilities Trade payables Bank overdraft Other Short term bank loans Expenses payables Total current liabilities Non-Current Liabilities Long term loan from Bank Total liabilities Net Assets/ (Liabilities) Equity Share Capital Reserves Accumulated profit/losses Total equity 2022 (Forecasted) $'000 400 1250 2250 100 4,000 300 100 400 4,400 150 160 10 80 400 1,300 1,700 2,700 2,300 50 350 2,700 2021 $ '000 1100 1000 1600 50 3750 350 100 450 4,200 100 200 20 80 400 900 1,300 2,900 2,300 50 550 2,900