what is the companys performance and position using financial ratio analysis

[20] QUESTION FOUR The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below. Hunter Limited I Statement of profit or loss and other comprehensive income for the year ended 31 December 2019 2019 2018 R R Revenue from sales Cost of Sales Opening Inventory Purchases Goods available for sale Closing Inventory Gross Profit Selling and distribution expenses 540 000 (360 000) 42 000 390 000 432 000 (72 000) 180 000 (37 000) 480 000 (318 000) 30 000 330 000 360 000 (42 000) 162 000 (36 000) Revenue from sales Cost of Sales Opening Inventory Purchases Goods available for sale Closing Inventory Gross Profit Selling and distribution expenses Administration expenses Interest on loan Profit before taxation Taxation paid Profit for the year Other comprehensive income Total comprehensive income for the year 540 000 (360 000) 42 000 390 000 432 000 (72 000) 180 000 (37 000) (72 000) (3 000) 68 000 (20 400) 47 600 480 000 (318 000) 30 000 330 000 360 000 (42 000) 162 000 (36 000) (54 000) (3 000) 69 000 (20 700) 48 300 Nil Nil 47 600 48 300 Hunter Limited Total Hunter Limited Statement of changes in equity for the year ended 31 December 2019 Ordinary Retained Preference Share capital earnings share capital Balance at 1 January 2018 120 000 12 000 60 000 Total comprehensive income 48 300 Preference dividends paid (6 000) Ordinary dividends declared (24 000) 120 000 30 300 Balance at 31 December 2018 60 000 47 600 Total comprehensive income 192 000 48 300 (6 000) (24 000) 210 300 47 600 Preference dividends paid Ordinary dividends declared Balance at 31 December 2019 (6 000) (15 000) 56 900 (6 000) (15000) 236 900 120 000 60 000 Hunter Limited Statement of financial position as at 31 December 2019 R R Note 2019 2018 258 000 264 000 1 258 000 264 000 Non-current assets Property, plant and equipment Current assets Inventory Trade Debtors 257 000 72 000 182 000 3 000 111 000 42 000 60 000 9 000 Bank 515 000 375 000 515 000 375 000 Equity Share capital Retained earnings Preference share capital 236 900 120 000 2 210 300 120 000 56 900 60 000 30 300 60 000 2 Non-current liabilities 60 000 5% Debentures 60 000 60 000 60 000 Current liabilities 218 100 104 700 182 700 60 000 Trade Creditors Taxation payable Shareholders for dividends 20 400 15 000 20 700 24 000 515 000 375 000 Additional Information and Notes: Pane 515 000 375 000 Additional Information and Notes: (1) All purchases and sales are made on credit terms. (2) Trade debtors at 31 December 2017 amounted to R140 000. 4 Required: Using the information provided above evaluate the company's performance and position using financial ratio analysis