Question-1 1. Writes short notes on the importance of: (Any Three) 05 a). Free cash flow, b) profitability and gearing ratios, c) bank reconciliation statement, and d) Asset turnover ratios. II. Given below are the income statements for Ahmed Ltd. for the last two years. 10 Particulars Year 2020 2019 Sales revenue $1500 $1000 Cost of sales 700 300 Gross profit 800 700 Less: Administration and distribution expenses 400 360 Less: Income tax expenses 200 340 Net profit after tax 200 170 In 2019 dividends were $100 and in 2020 they are $110. The company is financed by issuing 1200 @$1 ordinary share, and let us assumes the market price of each share was $1.64 at 31 December 2020 and $1.53 at December 2019. For each year calculate the following investor's ratio and comment on them briefly a) EPS b) Price Earning (P/E) c) Dividend yield d) Dividend Cover