Exercise Calculate liquidity, Profitability, Debt ratios from the below details and comment on the financial performance, compared to the previous year. 400,000 Statement of Income of XYZ LLC for the year ended 31st December 2015 & 2014 Particulars Amount(RO) Amount (RO) 2015 2014 Sales 270,000 Less: Cost of goods sold 135,000 200,000 Salaries 48,600 66,250 Depreciation 22,950 37,500 Interest 5,400 211,950 6,250 Income before taxes 58,050 Less: Income taxes 27,000 Net Income 31,050 310,000 90,000 29,700 60,300 Balance sheet of XYZ LLC as on 31 December 2015 & 2014 Assets Amount(RO) 2015 Non-current assets 878,472 Accumulated depreciation 152,712 Net non-current assets 725,760 Cash 24,192 Accounts receivable 68,040 Inventory 151,200 Total assets 969,192 Liabilities and Equity: Current liabilities: Accounts payable 111,888 Salaries payable 37,800 Total current liabilities 149,688 Long term debt 189,000 Shareholder's equity 630,504 Total liabilities & shareholder's equity Amount(RO) 2014 966,319 167,983 798,336 26,611 74,844 166,320 1,066,111 123,077 41,580 164,657 207,900 693,554