Section 2: Analysis and interpretation of financial statements (TOTAL: 20 MARKS) Wilson Ltd., a new medium-sized company operating in the agri-food sector, produces quality prepared food products. The following table illustrates the average performance of other companies in the same sector for 2020. Industry Average Results, 2020 Return on equity (ROE) Asset turnover Current ratio | Debt to equity ratio 27% 2 2 6.5 70% The following information has been extracted from the financial statements for 2020 and 2019 for Wilson Ltd. 2. Net profit for the year ended 30 June Sales revenue for the year ended 30 June Current assets as at 30 June Non-current assets as at 30 June Current liabilities as at 30 June Non-current liabilities as at 30 June 2020 $ 200,000 2,100,000 801,000 950,000 155,000 660,000 2019 $ 190,000 1,600,000 855,000 703,000 345.000 500.000 Comment on the company's profitability and liquidity for the year ended 2020 using the relevant ratios calculated in 1 above and the industry averages given in the question. Also, make recommendations to improve the company's profitability and liquidity position. () (12 marks) 1. Calculate the following ratios for Wilson Ltd for the year ended 30 June 2020. (all ratios must be rounded up to 2 decimal places) a) Return on Equity (ROE) b) Asset turnover c) Current ratio d) Debt to equity ratio (8 marks) Page 5 of 10 Page 6 of 10