You have been asked to assess the overall financial performance of Ball Limited in terms of its profitability, efficiency, liquidity, and solvency. The following are the financial ratios calculated for 2021 and 2022 for Ball Limited: Yolanda Limited Ratios 2021 2022 a. Gross profit % 40% 46 % b. Net profit % < 11% 8% c. Inventory Turnover period 30 days 25 days d. Average settlement period 30 days 40 days for Accounts receivable < e. Current ratio 1.3:1 f. Quick asset ratio 1:1 g. Gearing TL/TA < = 50% 10 times 1.1:1 0.9:1 65% 7 times h. Interest cover Required: a. Evaluate and discuss the overall performance of Ball Limited from 2021 to 2022 in terms of its profitability, liquidity, efficiency in working capital management, and solvency. Your answer must include at least one potential causal factor for the observed trends for each ratio. b. Your client is considering investing in Bell Limited. The following financial information was provided to you to assist your client with her decision. < Operating profit 10% Long Term Loan Share capital (issued share price at $3 per share) < Retained earnings opening 2021 ($) 3 million 1.5 million 3 million 1.75 million Total dividends paid 0.4 million Average market share price 3.50 2022 ($) 1 million 1 million 3 million 3.802 million 1.5 million 2.50 Other information: < The corporate tax rate is at 28%. < Required Calculate for each year the: 1. Gearing Ratio 2. Price/Earnings Ratio