You are the accountant of Fashionista Berhad, which is a clothing company. The directors of your company require you to analyze and interpret the most recent financial statements and compare its performance with those of previous year. You are presented with the following financial statements for Fashionista Berhad. Statements of Comprehensive Income for the year ended 31 March 2020 and 2021: 31 March 2020 31 March 2021 RM'000 RM'000 Sales revenue 2,000 2,900 Cost of sales (see note below) (1,200) (1,800) Gross profit 800 1,100 Distribution costs (160) (250) Administrative expenses (200) (200) Profit from operations 440 650 Finance cost (50) (50) Profit before tax 390 600 Income tax expense (44) (46) Net profit for the period 346 554 Note: 10% and 20% of purchases and sales were for cash respectively. Cost of sales figures are made up as follows: Opening inventory Purchases Year ended 31 March 2020 31 March 2021 RM'000 RM'000 180 200 1,220 1,960 1,400 2,160 (360) 1,200 1,800 (200) Less Closing inventory Cost of sales Statements of Financial Position 31 March 2020 31 March 2021 RM'000 RM'000 RM'000 RM'000 3,100 3.674 Non-current assets Property, plant and equipment Less accumulated depreciation (1,214) (1,422) 1,886 2,252 200 360 Current assets Inventory Trade receivables Cash at bank 400 750 100 120 700 1,230 3,482 2,586 1,000 1,000 Capital and reserves Issued ordinary share capital Share premium account Retained earnings 200 200 368 922 1,568 2,122 Non-current liabilities 10% loan notes 500 500 210 380 Current liabilities Trade payables Proposed dividend Income tax 430 260 48 50 518 2.586 860 3.482 a) For each of the two years, calculate THREE (3) profitability ratios, TWO (2) liquidity ratios and THREE (3) activity ratios to assist you in your analysis and interpretation of Fashionista Berhad's financial statements. (16 marks) b) Comment on the ratios you have calculated for both years, and suggest possible reasons for any changes. (9 marks)