The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ..... 2019 2018 000.S 11,200 000.$ 9,750 Sales Cost of sales 8,460 6,825 Net profit before tax This is after charging: Depreciation Lon note interest 465 320 360 80 280 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April... 2018 $'000 2019 S'000 $'000 S'000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 1690 3120 80 1950 3800 120 TOTAL ASSETS EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings 800 800 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables ation 750 30 690 890 20 790 3120 3800 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G Industry Average 30 April 2018 30 April 2018 16.70% ROCE (capital employed = equity + debentures) Profit/sales 18.50% %3D 3.90% 4.73% Asset turnover 4.29 3.91 Current ratio 2.0 1.9 Quick ratio 1.42 1.27 2021/2022- Semester 1 Financial Accounting II Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 35.23% 30.00% 40 days 37 days 52 days 49 days 13.90 18.30 26.37% 32.71% WRITTEN ASSIGNMENT You are required to: A. With the use of FIVE (5) advantages and FIVE (5) disadvantages, discuss the use of ratios in analyzing financial performance. (10 marks) B. Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations. (18 marks) C. Write a report to the board of directors of Dandy & Grandee Superstores Ltd. analyzing the performance of the company when 2019 is compared with the previous year 2018 and against industry average. (27 marks)