Statement of financial position as at 30 June 2018 2020 ($) 2019 ($) Current Assets Cash and cash equivalents Trade Receivables Inventories Total current assets Non-current assets Total Assets 2,300 13,400 90,502 106,202 480,750 586,952 2,370 17,175 143,955 163,500 435,750 599,250 1,896 15,458 158,350 175,704 398,175 573,879 23.175 150,000 173,175 23,287 120,000 143,287 24,153 100,000 124,153 Current liabilities Long-term borrowings Total liabilities Equity Share Capital Retained Earnings Total Equity Total equity and liabilities 338,250 75,527 413,777 586,952 338,250 117,713 455,963 599,250 338,250 111,476 449,726 573,879 Statement of profit and loss for the year ending 30 June 2020 2019 149,450 76,388 73,062 197,513 82.875 114,638 Revenue Less: Cost of goods sold Gross profit Less: Operating expenses Selling and distribution expenses Administrative expenses Operating profit Interest expenses Profit before tax Less: Income tax expense Profit after tas 17.250 86,325 (30,513) 1,470 (31,983) 203 (32,186) 14,663 73,376 26,599 1,210 25,389 3,808 21,581 The Chief Executive Officer (CEO) of Troung Limited reported in the most recent meeting of the Board of Directors that The profitability of our company has been severely affected by the Covid-19 pandemic, but Troung Limited is in good shape with respect to liquidity and leverage. We have sufficient resources to get through the current difficult time without further borrowing." Required: a. Calculate the following ratios for the financial years ending 30 June 2019 and 30 June 2020. Show your working and round all ratios to 2 decimal places. Formulas are provided at the end of this test paper. i Gross profit margin ii. Return on equity iii. Return on capital employed iv. Current ratio V. Acid-test ratio vi. Gearing ratio (24 marks) Evaluate the statement of the CEO, supporting your evaluation with the ratios you have calculated in part a. (9 marks) b