QUESTION 1: ANALYSIS AND INTERPRETATION TOTAL: 22 MARKS Part A: You have been given some financial ratios for Mighty Furniture Limited for the last three years as shown below: Ratios 2018 2019 2020 a. Gross profit % 40% 35% 30% b. Net profit % 12% 9% 6% C. Inventory 35 days 50 days 62 days Turnover period d. Average 32 days 40 days 60 days settlement period for Accounts receivable e. Current ratio 7:1 5:1 3:1 f. Quick asset ratio 2.3:1 1.5:1 1.1:1 Required: a. Using the ratios above, assess the profitability, liquidity and efficiency of Mighty Furniture for the last three years (2018 to 2020) and identify the causal factors. (6 marks)