Shown below are the recent issued (summarized) financial statements of XYZ Limited, a listed company, for the year ended 30 September 2021, together with comparatives for 2020. STATEMENT OF COMPREHENSIVE INCOME 2021 2020 GH000 GH000 Revenue 250,000 180,000 Cost of sales (200,000) (150,000) Gross profit 50,000 30,000 Operating expenses ( 26,000) ( 22,000) Finance cost ( 8,000) ( nil ) Profit before tax 16,000 8,000 Income tax expenses ( 4,000) ( 2,000) Profit for the year 12,000 6,000 STATEMENT OF FINANCIAL POSITION Non-current assets Property, plant and equipment 210,000 90,000 Goodwill 10,000 nil 220,000 90,000 Current assets Inventory 25,000 15,000 Trade receivables 13,000 8,000 Bank nil 14,000 38,000 37,000 Total assets 258,000 127,000 Page 7 of 8 Equity and liabilities Equity shares 100,000 100,000 Retained earnings 14,000 12,000 114,000 112,000 Non-current liabilities 8% loan notes 100,000 nil Current liabilities Bank overdraft 17,000 nil Trade payables 23,000 13,000 Current tax payable 4,000 2,000 44,000 15,000 Total equity and liabilities 258,000 127,000 There were no disposals of non-current assets during the year. The following ratios have been calculated for XYZ Limited for the year ended 30 September 2020: Return on year-end capital employed 7.1% (Profit before interest and tax over total assets less current liabilities) Net asset (equal to capital employed) turnover 1.6 Net profit (before tax) percent 4.4% Current ratio 2.5 Quick acid test ratio 1.5 Closing inventory holding period (stock turnover) (in days) 36.5 Trade receivables collection period (in days) 16.2 Trade payables payment period (based on cost of sales) (in days) 31.6 Gearing long-term debt (long term debt over long-term debt plus equity) nil. REQUIRED: A) Calculate ratios for YXZ Limited for the year ended 30 September 2021 equivalent to those calculated for the year ended 30 September 2020 (showing your workings). B) Assess the financial performance and financial position of XYZ Limited for the year ended 30 September 2021 compared to the previous year 2020. C) Explain three limitations of financial statements analysis based on ratios. D) Using the Altmans Z score model, predict the extent of corporate failure of XYZ Limited for the year ended 30 September 2021. [