You are an assistant financial consultant for Simplicity Financial and Business Advisory Group PtyLtd, and you have been notified the client converted their business to a public company PTCG Ltd. Below is the new company's performance information. You have been assigned to prepare a detailed financial analysis for PCGT Ltd using comparativefinancial statement information per the Corporations Act 2001, Accounting Standards (AASB101) and other financial regulations. Ignore GST in this question. 5-year record of Sales 2022 2021 2020 2019 2018Net Sales861,000 805,000 681,000 719,000 737,0005-year record of Cost of Goods soldCost of 2022 2021 2020 2019 2018goods sold 516,000 511,000 491,000 450,000 471,000 3. A set of financial reports for years ending 30 June 2021 and 2022, respectively. PTGC Ltd Comparative Income StatementsFor the years ended 30 June 2021 and 2022 Net Sales Less: Cost of goods soldGross Profit Other Revenues Interest revenue Expenses Selling ExpensesAdministrative ExpensesInterest expense Total Expenses Profit before Income tax expense Income tax paid Net Profit 2022861,000516,000345,000 126,000118,000 24,000268,000 81,000 33,00048,000 2021805,000511,000294,000 294,000 114,000123,000 14,000251,000 43,000 17,00026,000 PTGC LtdComparative Balance SheetAs at 30 June 2021 and 202220222021AssetsCurrent AssetsCash at bank29.00032,000Accounts receivable114,00085,000Inventories113,000111,000Prepaid Expenses6,0008,000Total Current Assets262,000236,000Non - current AssetsLong-term investments18,0009,000Property, plant, and equipment (netaccumulated depreciation)507,000399,000Total non-current assets525.000408.000Total Assets787,000644,000LiabilitiesCurrent LiabilitiesLoan payable42,00027,000Accounts payable73,00068,000Accrued liabilities27,00031,000Total current liabilities142,000126,000Non-current LiabilitiesLong term borrowings289.000198.000Total liabilities431.000324.000Net Assets356,000320,000Shareholders' EquityShare Capital186,000186,000Retained earnings170.000134.000Total Shareholder's equity356,000320,000 Additional information . Inventory for 2020 was $109,000. . Shareholders Equity for 2020 was 280,000. . Accounts receivable for 2020 was $80,000. . Total Assets for 2020 were 620,000. . During 2021 and 2022 when the business incorporated 93,000 ordinary shares were issued. Share Price for 2021 $3.50 . Share price for 2022 $5. . Dividend paid 2021 10c per share. . Dividend paid 2022 12c per share. . All financial statements are prepared in accordance with AASB 101 Industry standards/benchmarks Current Ratio 1.38:1Ligquid Ratio 1.18:1Day's sales in ending Inventory 34 days.Inventory Turnover £.28 timesAccounts receivable Turnover 7-10Debt to Asset ratio 75% Day's sales in Receivables 39 days Earmnings per Share $0.35 per share P/E ratio 18.86 timesMet Profit margin 22% Times Interest Covered 3.74 times.Dividend yield 10%Required: Following Simplicity Financial and Business Advisory Group Pty Ltd policies and procedures prepare the following: Task 1 Financial statement analysisThe client needs a review of financial performance as well as working capital management.a)Use the Net Sales and Cost of goods information supplied to work out the gross profit.b)Work out the Trend percentages for the information in item 1 using 2018 as the base year.C)Perform a horizontal analysis using both dollar amounts and percentages.d)Perform a vertical analysis 2021 and 2022.e) Discuss the importance of AASB101 in relation to financial Statement analysis.Task 2Due to unforeseen circumstances, you have been waiting on further information and data from the client.The data initially sent to you was corrupted and you are unable to access essential information forfinalisation of the client's file and reportsa)Draft an email to your supervisor to seek help and more time to complete the client work. Youcurrently are unable to meet the manager's review time and you are aware that the situation mayresult in financial implications for SFBAG Pty Lid if the client files are not completed in the agreedtimeframes.Task 3 Financial Ratio workings and Financial Performance reportIn an Excel spreadsheet template supplied calculate and provide ratio categories on all the ratios aspresented in the ratio template. (Follow organisational policies and procedures for SFBAG Pty Ltdon ratio preparations as they are still relevant to the new entity.)3) PTGC Lid requested calculations, analysis, and commentary for 2022 and 2021 on the followingratios:b) Current Ratioc) Acid test Ratio (also called Liquid or Quick)d) Inventory Turnovere) Accounts Receivable collection periodf) Accounts Receivable Turnoverg) One Day's Salesh) Day's Sales in Accounts receivablesi) Day Sales in Ending inventoryi) Debt to total Assets ratio