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Question 4- (Total 14 marks) Following are the important extracts from the balance sheet and income statement of H&Y Co. for the past three years. You are required to perform a detailed financial analysis of the company for last three years and compare its current year's performance with the sector. 2018 (Rs.m) 5.27 4.85 2019 (Rs.m) 5.67 5.1 2020 (Rs.m) 6.5 5.89 sales turnover operating cost operating profit before tax Tax profit after tax Dividends net profit 0.42 0.11 0.31 0.05 0.26 0.57 0.15 0.42 0.61 0.1 0.51 0.15 0.36 0.1 0.32 Bank Dbtors finished goods Material fixed assets current liabilities 2018 (Rs.m) 1.85 1.22 0.47 0.07 2.3 1.42 4.49 2.73 1.76 4.49 2019 (Rs.m) 2.01 1.34 0.52 0.13 2.42 1.66 4.76 2.73 2.03 4.76 2020 (Rs.m) 2.39 1.67 0.53 0.17 2.69 1.78 5.67 2.73 2.94 5.67 bank loans capital and reserves L Distribution Cost Administration cost Labour cost 2018 (Rs.m) 0.38 0.17 0.74 2019 (Rs.m) 0.42 0.23 0.85 2020 (Rs.m) 0.51 0.28 1.09 Average ratios of the industry 2020: 16% 77% Labour cost to sales operating cost to sales distribution cost to sales admin cost to sales gearing ratio ROCE current ratio acid test ratio net profit margin debtors collection period 10.2 5.3 29% 28% 1.3 0.9 15.50% 79 day 1.68 times asset turnover ratio Required: Perform a ratio analysis, as given in the schedule of industry average, for last three years and give detailed interpretations to understand the changes within company and its comparison with the industry ratios