Statements of Financial Position as at 31 December 20202021 EQUITY AND LIABILITIES SharecapitalandreservesNon-currentliabilitiesCurrentliabilities2,1905009653,6551,4014007042,505 Income statement for the year ended 31 December 2021 and 2021 \begin{tabular}{lcc} & ZMW & ZMW \\ & & \\ Revenue & 7,180 & 5,435 \\ Cost of sales & 5,385 & 4,212 \\ Gross profit & 1,795 & 1,223 \\ \hline Distribution costs & 335 & 254 \\ \hline Administrative expenses & 670 & 507 \\ \hline Profit from operations & 790 & 462 \\ \hline Finance costs & 50 & 52 \\ \hline Profit before taxation & 740 & 410 \\ \hline Company tax expense & 262 & 144 \\ \hline Profit after taxation & 478 & 266 \end{tabular} a) Calculate the profitability, liquidity, and gearing ratios. b) Based on your calculations, write a management report to the board, explaining the position of the company based on you calculation Statements of Financial Position as at 31 December 20202021 EQUITY AND LIABILITIES SharecapitalandreservesNon-currentliabilitiesCurrentliabilities2,1905009653,6551,4014007042,505 Income statement for the year ended 31 December 2021 and 2021 \begin{tabular}{lcc} & ZMW & ZMW \\ & & \\ Revenue & 7,180 & 5,435 \\ Cost of sales & 5,385 & 4,212 \\ Gross profit & 1,795 & 1,223 \\ \hline Distribution costs & 335 & 254 \\ \hline Administrative expenses & 670 & 507 \\ \hline Profit from operations & 790 & 462 \\ \hline Finance costs & 50 & 52 \\ \hline Profit before taxation & 740 & 410 \\ \hline Company tax expense & 262 & 144 \\ \hline Profit after taxation & 478 & 266 \end{tabular} a) Calculate the profitability, liquidity, and gearing ratios. b) Based on your calculations, write a management report to the board, explaining the position of the company based on you calculation