Question 2 The following information of Hydrangea Limited is given below: Hydrangea Limited Income Statements for the years ended: 2021 $000 Sales 90,000 Cost of goods sold (47,000) Gross profit 43,000 Less: Operating expenses (30,000) Net income 13,000 2020 $000 53,000 (32,000) 21,000 (17,700) 3,300 Hydrangea Limited Statements of Financial Position Assets Furniture at net book value Closing Inventory Trade receivables Cash Total assets 2021 $000 82,000 4,000 13,300 22,000 121,300 2020 $000 67,000 3,000 3,000 16,650 89,650 100,000 16,300 116,300 80,000 3,300 83,300 Equity: Share Capital Retained earnings Total equity Liabilities: Trade payables Accruals Total liabilities Total liabilities and equity 4,000 1,000 5,000 121,300 5,810 540 6,350 89,650 Required: a. Calculate the following ratios for each of the 2 years: 2 i. ii. iii. iv. Gross Profit Margin. Net Profit Margin. Inventory Turnover Period. Trade Payable Payment Period. [4 marks] [4 marks] [4 marks] [4 marks] b. From the results of the results of the ratios computed, comment on the overall profitability of the above business over the last 2 years. [4 marks] [Total: 20 marks]