Required: Calculate the following financial ratios for both 2020 and 2021 (using year end figures for balance sheet items) and indicate that which items of these statements are increasing and decreasing?

All ratios which can be calculated from the information

TUTORIAL 8 - RATIO ANALYSIS - EXERCISE 2 Scenario: Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2020 and 2021 are as follows: Profit and loss account for the year ended 30 June Particulars 2021 E'000 E000 1.200 1750) 450 Revenue Less: Cost of sales Gross profit Less: Operating expenses Depreciation Interest Profit before tax Less: Tax Profit after tax Dividend -paid Retained profit for the year 2020 '000 '000 1.180 (680) 500 200 66 (266) 234 (80) 154 (70) 84 208 75 8 (2911 159 48 172 39 Balance Sheet as at 30 June 687 #* 2020 2021 Particulars *000 1000 E'000) E000 Non-current assets 702 Current assets: Stocks 148 236 Debtors 102 156 Cash 253 396 Current liabilities: Trade creditors (60) (76) Other creditors and accruals (18) (16) Tax (40) (24) Bank overdraft (81) (122 (238) Net current assets 54 158 Non-current liabilities: Bank loan 50) 756 795 Equity 500 500 Ordinary share capital of 1 (fully paid) Retained profit 256 295 756 795 Required: Calculate the following financial ratios for both 2020 and 2021 (using year-end figures for balance sheet items) and indicate that which items of these statements are increasing and decreasing? (199) 11