The following are the summarised financial statements of APX Ltd for the past two years: Income statement for the year ended 30 November Sales revenue Year 4 Year 5 000 000 000 000 4,940 6,850 Less Cost of sales Opening inventories 630 930 Purchases 3.320 4870 3,950 5,700 Less Closing inventories 930 3,020 1.150 4,550 Gross profit 1,920 2,300 Less Expenses 1,460 1.850 Operating profit 460 450 Statement of financial position as at 30 November Year 4 Year 5 000 000 Non-current assets 2.600 3.210 Current assets Inventories Trade receivables 930 1,850 820 1,230 Cash at bank 20 10 1.770 3.090 Total assets 4.370 6.300 Equity l ordinary shares 1,000 1,800 Share premium 400 Reserves 2.810 3.260 3,810 5,460 Current liabilities Total equity and liabilities 560 840 4.370 6.300 Required: Comment on the performance of the business over the two years using financial ratios in the area of profitability (gross profit margin and operating profit margin) and liquidity (current ratio and quick ratio). (40 marks)