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The financial results of Prudence Ltd., a small retailing company, are as follows: Required:- 1. Using the data provided in the income Statement and the

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The financial results of Prudence Ltd., a small retailing company, are as follows: Required:- 1. Using the data provided in the income Statement and the Statement of Financial Position of Prudence Ltd., calculate the following ratios for both 2021 AND 2022: - a. Return on Capital Employed ratio, b. Quick ratio, c. Receivables collection period, d. Inventory turnover period and e. Gearing Ratio 2. Using your results from 1. critically analyse the financial health of the organisation using each of above-stated five ratios. In your answer, please state if each category of ratio has improved or deteriorated; reasons for the improvement or deterioration and the recommendations (if any) to the managers of Prudence tid. for future improvement. (10 Marks) TOTAL MARKS =15

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