Question 2 The following information of Blizten Limited is given below: Blizten Limited Income Statements for the years ended: 2021 $000 Sales 120,000 Cost of goods sold (48,800) Gross profit 71,200 Less: Operating expenses (43,000) Net Profit 28,200 2020 $000 90,000 (31,000) 59,000 (38,000) 21,000 Blizten Limited Statements of Financial Position Assets 2021 $000 2020 $000 Plant and Equipment (at net book value) Closing Inventory Trade receivables Cash Total assets 90,000 20,050 27,070 12,280 149,400 68,000 18,570 22,900 7,880 117,350 85,000 49,200 134,200 80,000 21,000 101,000 Equity: Share Capital Retained earnings Total equity Liabilities: Trade payables Accruals Total liabilities Total liabilities and equity 14,000 1,200 15,200 149,400 15,810 540 16,350 117,350 Required: a. Calculate the following ratios for each of the 2 years: i. Current Ratio. ii. Acid-Test Ratio. iii. Gross Profit Margin. iv. Net Profit Margin. [4 marks] [4 marks] [4 marks] [4 marks] b. From the results of the results of the ratios computed, comment on the overall liquidity position of the above business over the last 2 years. [4 marks] [Total: 20 marks]