You are the accountant of Spicy Yummy, a fast food 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 summarised accounts for Spicy Yummy. Statements of Comprehensive Income for the year ended 31 March 2019 and 2020: Sales revenue Cost of sales (see note below) Gross profit Distribution costs Administrative expenses Profit from operations Finance cost Profit before tax Income tax expense Net profit for the period 31 March 2019 RM'000 2,000 (1,200) 800 (160) (200) 440 (50) 390 31 March 2020 RM'000 2,900 (1.800) 1. 100 (250) (200) 650 (50) 600 (46 554 346 Note: 10% and 20% of purchases and sales were for cash respectively. Cost of sales figures are made up as follows: Year ended 31 March 2019 31 March 2020 RM'000 RM'000 Opening inventory 180 200 Purchases 1.220 1,960 1,400 2,160 Less Closing inventory (200) (360) Cost of sales 1,200 1,800 Statement of Financial Position 31 March 2019 31 March 2020 RM000 RM'000 RM'000 RM'000 3,100 3.674 (1,214) (1.422) Non-current assets -cost Less accumulated depreciation 1,886 2,252 200 Current assets Inventory Trade receivables Cash at bank 400 360 750 120 100 700 2,586 1,230 3,482 1,200 1,200 Capital and reserves Issued ordinary share capital Accumulated profits 368 922 1,568 2.122 Non-current liabilities 10% loan notes 500 500 210 Current liabilities Trade payables Sundry payables Income tax 260 380 430 50 48 518 2,586 860 3.482 Required: a. For each of the two years, calculate those ratios that related to profitability (2), liquidity (2) and efficiency (2) to assist you in your analysis and interpretation of Spicy Yummy's financial statements. (12 marks) b. Comment on the ratios you have calculated for both years, and suggest possible reasons for any changes. (8 marks)