The following are the summarised statement of Profit and loss and other comprehensive income and Statement of financial positions for Greenyards Ltd, a manufacturing company, and Poynder Ltd, a retailer.

Profit Statements for the years ended 31 March

Greenyards Ltd Poynder Ltd

2021 2022 2021 2022

$000 $000 $000 $000

Sales 500 610 425 460

Cost of sales (245) (355) (210) (230)

Operating costs (225) (230) (190) (200)

Loan interest paid (7) (10) (7) (3)

Net profit 23 15 18 27

Statement of financial position as at 31 March

2021 2022 2021 2022

$000 $000 $000 $000

Non-current Assets Assets at Carrying amount 150 225 220 175

Inventory 50 60 27 20

Receivables 20 30 - -

Bank 10 (35) 13 57

Payables (25) (20) (35) (50)

205 260 225 202

Share capital 50 50 50 50

Retained profit 95 110 100 127

Long term loans 60 100 75 25

205 260 225 202

Required

1. Use eightratios to compare the management's performance from 2021 to 2022 for eachcompany. Give answers to a maximum of one decimal place. Show all workings.

(8 marks)

1. Using ratios calculated above analyse the performance of the companies and explain the possible reasons why certain ratios are favourable or adverse ( 16 marks)