Question 2 (Total 30 marks) The following summarized data are extracted from the financial statements of NIT Limited and PIT Limited for the year ended 31 December 2020. Ordinary share capital Bank loans (long-term) Non-current assets, at net book value Closing inventory, at cost Trade receivables Trade payables Cash Sales Cost of sales Total expenses NIT $'000 380,000 99,000 128,000 16,500 24,000 32,000 55,000 350,000 205,000 125,000 PIT $'000 330,000 109,000 138,000 93,000 78,000 125,000 10,500 370,000 220,000 94,870 Notes: 1. NIT and PIT produces similar goods in the same industry with comparable size and structure. 2. Goods are purchased and sold on credit for both companies. Required: (a) Compute the following ratios for both NIP Limited and PIT Limited for the year ended 31 December 2020. (i) Gross profit margin; (ii) Net profit margin; (iii) Current ratio; (iv) Quick ratio; and (v) Inventory turnover (in times and in days) [using closing inventory] Notes: 1. Formula and workings for calculation are required. 2. Round off non-integers to two decimal places. (18 marks) (b) Provide your comments on the relative financial performance of NIT Limited and PIT Limited based on the profitability and liquidity ratios calculated in (a) above. (12 marks) (Total 30 marks)