QUESTION 5: Moores (Kippers) Limited ("the Company provides fresh and frozen seafood to hotels, catering business and the retail trade. The Company's financial statements for the year ended 30 April 2021 are as follows: Income Statement Revenue Cost of Sales GROSS PROFIT Operating Expenses Operating Profit Interest Payable Profit before Taxation Taxation Profit for the year 2020 '000 747 581 166 79 87 13 74 20 54 2021 '000 894 690 204 85 119 22 97 25 72 Balance Sheet 2020 m 2021 m Non-Current Assets Property Plant and Equipment 149 165 Current Assets Inventories Trade Receivables Cash at Bank 50 80 61 191 74 106 104 284 Total Assets 340 449 Current Liabilities Trade payables Other payables 74 33 107 86 34 120 Non-Current Liabilities Bank Loan 67 80 Total Liabilities 174 200 Net Assets 166 249 Equity Share Capital Retained Profits 100 66 166 111 138 249 Average Industry Performance 2:1 Gross Profit 20% Operating Profit 10% Current Ratio Acid Test Ratio 1.3 Trade Receivable (Debtor) Days 35 Trade Payable (Creditor) Days 40 Inventory Turnover 11 Gearing 20% REQUIRED: a) Compute the ratios of the Company for years 2020 and 2021 as shown above for the industry, (16 marks) b) Comment on the profitability, liquidity, efficiency and solvency of the company by analysing the ratios calculated in a) above. (9 marks) (Total: 25 marks)