required evaluate the firm's performance for the years 2020 and 2021 by: a. calculating the same ratios as the industry norms (20 marks) b.remarks on the performance of Neftec based on your calculations (20 marks) q5 use the following information to answer the questions above Neftec industries - statement of financial position as st 31 Dec 2020 and Dec 2021 non current assets 2020 2021 land. 20000. 26000 buildins& equipment. 70000. 100000 less: allowance for depreciation (28000). (38000) total non current assets 62000. 88000

current assets cash 9000 500 accounts receivable. 12500. 16000 inventories. 29000. 45000 total current assets 50500. 62000 total assets 112500. 150000

equity and liabilities equity ordinary shares. 31500. 31500 retained earnings 24750 26550 total equity. 56250. 58050

non current liabilities long term debt 28750. 22950 total non current liabilities 28750. 22950 current liabilities accounts payable. 10500. 22000 bank notes 17000. 47000 total current liabilities 27500. 69000 total equity & liabilities 112500 150000

Neftec industries statement of income for years ended December 31,2020 and 31 Dec 2021 sales 125000. 160000 cost of goods sold (75000). (96000) gross expenses fixed cash operating expenses 21000. 21000 variable operating expense 12500 16000 depreciation 4500 10000 total operating expense 38000. 47000 earnings before interest and taxes 12000. 17000 interest (3000). (6100) earnings before taxes 9000. 10900 taxes (4500). (5400) net income 4500. 5450

industry norms current ratio. 1.8 acid test ratio 0.70 average collection period 31.00 inventory turnover 2.50 debt ratio. 0.58 gross profits margin. 39% operating profit margin. 10% total asset turnover. 1.40 return on total assets. 4.0% return on common equity. 9.5