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please do it in detail and the write clearly Question 3 The income statement for POP Pte Ltd are shown below: POP Pte Ltd Income

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Question 3 The income statement for POP Pte Ltd are shown below: POP Pte Ltd Income Statement For the Year Ended 31 Dec 20 S('000) Sales Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Operating Profits Less : Interest Expenses Profit before Taxes Less : Taxes (20%) Profit After Taxes 31 Dec 19 $('000) 2,000 600 1,400 800 600 360 240 48 192 2,200 660 1,540 1.000 540 360 180 36 144 (a) 2019 (b) Copy the following table and calculate the following ratios (to 2 decimal places) for the two years. Ratios 2020 Gross Profit Margin Operating Profit Margin Net Profit Margin (6 marks) Using your answers in part (a), evaluate the profitability and expense management of the company over the two years. (4 marks) For each of the following financial ratio, would the financial manager prefer a higher or lower ratio? Why? c) Price/Earning Ratio (ii) Book Value Per Share (iii) Market/Book Ratio (c) (6 marks)

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