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Q . 1 M Ltd has the following information relating to the financial performance and position for the financial year 2 0 2 3 .

Q.1 M Ltd has the following information relating to the financial performance and position for the financial year 2023. Income Statement for the year ended 31/12/2022 Particulars Shs (millions) Turnover 720 Cost of sales 432 Gross profit 288 Distribution and administration costs 138 Operating Profit 150 Interest 45 Profit before tax 105 Taxation 42 Retained profit 63 Statement of Financial Position as at 31/12/2022 Assets Shs (millions) Land and building 600 Plant and equipment 555 Inventory 115 Debtors 89 Prepayments 10 Bank 6 Total Assets 1,375 Liabilities Shs (millions) Creditors 45 Taxation 42 Proposed dividends 30 Accruals 812% Debentures 375 Ordinary shares 500 Retained profits 375 Total Capital & Liabilities 1,375
Required:
A) Explain in details the five categories into which financial ratios can be classified. (15 marks)
B) Carry out an analysis of the profitability, efficiency and liquidity of M Ltd for the financial year 2022.

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