XYD Ltd has been trading for the past two years. You as their accountant have prepared the following financial statements for them and asked you to report on its performance. TASK REQUIRED: Using the financial statement below, calculate and interpret appropriate liquidity, profitability, efficiency, and investment ratios to advise the management of the companys performance. Please include your calculations to help show and support your interpretation of the different ratios used.

XYD Ltd Income statement for the year ended 31st March 2022 2021 2022 000 000 160,000 200,000 (96,000) (114,000) 64,000 86,000 (30,000) (34,000) (5,000) (5,000) 29,000 47,000 (9,000) (12,000) 20,000 35,000 XYD Ltd Balance sheet as at 31st March 2022 2021 2022 000 000 300,000 320,000 15,000 20,000 40,000 50,000 3,000 1,000 58,000 71,000 (25,000) (35,000) 36,000 356,000 300,000 56,000 356,000 Sales Cost of sales Gross profit Expenses Interest Net profit before tax Tax Net profit after tax Fixed assets Current assets Stocks Debtors Cash Less Current liabilities Creditors Net current liabilities Capital Share capital Long-term Loans 33,000 333,000 300,000 33,000 333,000