PSB12.3 Perform ratio analysis, and discuss change in financial position, operating results and limitation of financial statement analysis. LO4 Condensed financial statements for Jasmine Ltd are presented below JASMINE LTD Statement of financial position as at 30 June 2019 2018 2017 Cash 60000 40000 S 18000 Receivables (net) 60 000 48 000 70000 85 000 Inventory 90000 64 000 75 000 70000 Investments 45 000 Plant and equipment (net) 500000 410000 358 000 $795 000 $665 000 $533 000 70000 Current liabilities 75 000 80000 Long-term debt 80 000 85 000 50000 Share capital, $10 each 340 000 300 000 300 000 Retained earnings 300 000 200000 113 000 $795 000 $665 000 $533 000 JASMINE LTD Statement of profit or loss for the year ended 30 June 2019 2018 Sales $710 000 $780 000 (50000) Less: Sales returns and allowances Net sales 740 000 660 000 Cost of sales 420 000 450 000 Gross profit 210 000 320 000 Operating expenses (including income tax) 200 000 110 000 $120 000 $100 000 Profit Additional information 1. The market price of Jasmine Ltd's shares was $4 at 30 June 2017, $10 at 30 June 2018 and $15 at 30 June 2019. 2. All dividends were paid in cash. 3. The weighted average number of shares was 30 000 in 2018 and 31 984 in 2019 Required a. Calculate the following for 2019 and 2018. 1. Profit margin 2. Gross profit margin 3. Asset turnover 4. Earnings per share 5. Price/earnings ratio 6. Cash dividend payout ratio 7. Debt to total assets ratio b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2018 to 2019 of Jasmine Ltd. c. Discuss the limitations of financial statement analysis