Q3(d) The following figures for the last two years ended 31 December 2020 and 31 December 2019 have been extracted from the final accounts of Yellow Plc, a company involved in the manufacturing industry whose authorised share capital is 1,000,000 made up of one million CEU44E01 ordinary shares of 1 each and 500,000 5% preference shares at 1 each. Stock at 31 December 2018 was 650,000. You are required to: (i) Outline any TWO general observations from the trading performance for the year and position at 31 December 2020. [2] (i) Calculate FOUR difference ratios for the current year and the prior year. Based on the ratios calculated, determine whether investors would be satisfied with the performance of the company. Show details of your calculations. [8] Income statement for the year ended Sales Cost of sales Gross Profit 31/12/2020 '000 12,192 (9,144) 3,048 31/12/2019 000 15,240 (9,906) 5,334 Operating expenses (dist., admin.) Operating profit (2,530) 518 (2,300) 3,034 Interest Profit before tax (50) 468 (50) 2,984 Tax Profit for period (59) 410 (373) 2,611 Reconciliation of reserves Opening balance b/forward Profit for the year Dividends proposed Closing balance 7,311 410 (500) 7,221 7,000 2,611 (2,300) 7,311 CEU44E01 Balance sheet for the year ended 31/12/2020 000 31/12/2019 '000 Non current assets Fixed assets 6,500 5,674 Current assets Stock Debtors Cash 1,200 1,660 560 3,420 9,920 815 1,270 1,955 4,040 9,714 Total assets Equity Preference shares Ordinary shares Retained earnings 300 1,000 7,221 8,521 300 1,000 7,311 8,611 Non current liabilities Debentures 10% 500 500 500 500 Current liabilities Total equity and liabilities 900 9,921 603 9,714