Question 14 The financial statements disclosed for Maxwell Limited year ended 31 December, 2021 is as follows: Maxwell Limited Statement of Financial Position as at December 31, 2021 Non-current assets Building Equipment Motor vehicle Furniture and Fixtures Investments Total non-current assets Current assets Inventory 2021 2020 GHC GHC GHC GHC 735,000 766,000 277,500 324,000 220,000 260,000 149,000 210,000 80,000 100,000 1,461,500 1,660,000 845,000 2,650,000 10 Receivables 958,000 2,450,000 Bank 180,000 245,800 Total current assets 1,983,000 5,345,800 Total assets 3,444,500 7,005,800 Current liabilities Trade payable 745,000 2,750,000 Overdraft Financed by 1,739,463 3,063,807 2,484,463 5,813,807 Stated capital 500,000 Income surplus 460,037 500,000 691,993 Total equity and liabilities 960,037 3,444,500 1,191,993 7,005,800 Maxwell Limited Statement of Comprehensive Income for the Year Ended December 31, 2021 2020 GHC 2021 GHC GHC GHC Sales 2,970,000 7,425,000 Opening Inventory 305.000 845,000 Purchases 2,608,700 7,050,250 2,913,700 7,895,250 Closing inventory (845,000) 2,068,700 (2,650,000) 5,245,250 Gross profit 901,300 2,179,750 Operating expenses (361,000) (1,254,100) Depreciation (200,500) (561,500) (271,500) (1,525,600) NPIT/EBIT 339,800 654,150 Interest PBT Tax (24.500) (35,600) 315.300 618,550 (78,825) (154,638) PAT Required: 236,475 463,912 (a) Calculate any two profitability ratios for each year. (b) Calculate two liquidity ratios for each year. (c) Calculate any two efficiency/activity ratios for each year. (d) Calculate any two solvency ratios for each year. (e) Explain three limitations inherent in ratio analysis. (3 marks) (3 marks) (3 marks) (3 marks) (3 marks) (15 marks)