QUESTION THREE:

The following summarized financial figures relate to North Ltd, a business operating in the clothing retail sector (Financial figures are in US$):

Extracted Financials	31/12/2020	31/12/2021
Sales revenues	32,000	45,000
Profit after tax	1,600	1,550
Total current assets	4,400	5,600
Total current liabilities	2,900	5,100
Inventories	2,750	5,100
Accounts receivables	100	200
Cash	1,550	0
Accounts payables	1,500	3,500
Tax due	1,400	1,100
Overdraft (Cash)	0	500

In year 2021, the company opened a third store. As a specialist in financial management, you are required to:

Prepare a comparative analysis of the above extracted financials as at December 31, 2020 and 2021 and comment according to your financial analysis.

To prepare the current and quick ratios.

In 2021, the CEO of North Ltd asked you to analyze the liquidity of the company according to the available information in 2020 and 2021 and prepare a short report on company's liquidity.