The following financial statements have been provided for Ozone Limited, a manufacturer of food products, as at 31 December 2020 (with comparatives):

Ozone Limited Statement of Financial Position as at 31 December

2020 2019

'm 'm

Non-Current Assets

Property, Plant & Equipment230 180

Total Non-Current Assets230 180

Current Assets

Inventories 19.5 15.2

Trade Receivables 14.2 14.7

Cash & Cash Equivalents 8.2412.4

Total Current Assets 41.9442.3

TOTAL ASSETS 271.94222.3

Equity & Liabilities

Equity

Share Capital80 50

Share Premium 10 5

Retained Earnings 65.29 63.5

Total Equity155.29118.5

Non-Current Liabilities

Long-Term Loan

Total Non-Current Liabilities100 90

100 90

Current Liabilities

Trade Payables 15.9 13.3

Current Tax Payable.75.5

Total Current Liabilities 16.6513.8

Total Equity & Liabilities271.94222.3

Other Relevant Information 'm 'm

Revenue 86.4 81.1

Cost of Sales68.9967.074

Administrative Expenses 2.462.146

Distribution Costs 4.754.08

Finance Costs5.3 4.6

Income Tax .71.4

Profit after Tax 4.192.8

Dividends Paid 2.4 1.7

Required: using the above information -

(a)Calculate six appropriate ratios in order to comment on, and critically assess, the liquidity, profitability and gearing of Ozone limited.

(b)Review the above financial statements and identify any additional long-term funding raised by Ozone limited in 2020. Indicate where this funding was spent.

(c)Identify and critically discuss the main limitations of ratio analysis as a means of assessing the financial performance of a business.