The following are summarized financial statements of Anna Limited for the year ended 31^st December 2022.Comparable figures for the previous year are also shown

Income statement for the year ended 31st December

2022 2021

Shs 000 Shs 000

Sales 57,600 36,000

Less cost of goods (35,400) (21,000)

GROSS PROFIT 22,200 15,000

Trading expenses (9,900) (8,100)

Net profit before interest and tax 1 2,300 6,900

Less debenture interest (450) (450)

Net profit before tax 11,850 6,450

Less corporate tax (5,760) (2,880)

Net profit after tax 6,090 3,570

Less ordinary share dividend (3,150) (2,250)

Undistributed profit for the year 2,940 1,320

N/B Assume 25% of the sales are on credit

Statement of financial position as at 31^st December

2022 2021

Shs 000 Shs 000

Fixed assets 17,200 11,800

Less depreciation (4,500) (3,600)

Inventories 9,900 7,200

Accounts Receivable 6,300 4,500

Marketable Securities 5,000 5,000

Cash/bank balance 0 1,440

Total Assets 33,900 26,340

Payables 3,600 2,610

Taxation 5,760 2,880

Bank overdraft 1,170 0

Proposed Dividend 3,150 2,250

Ordinary share capital

Shs 25 per share 9,000 9,000

Undistributed profits 8,040 5,100

15% debentures-secured 3,180 4,500

Equity and Liabilities 33,900 26,340

Required:

1. Compute the following ratios for Anna Limited for the year ended 31^st December 2022 and where applicable comment on the answers computed based on your understanding of ratio analysis.
2. Liquidity ratios -
3. Leverage ratios
4. Activity ratios
5. Profitability ratios