You have recently been appointed as assistant to the financial controller of Frank plc, a manufacturing company. He has asked you to help with the finalisation of the financial statements for the year ended 31 December 2018 and year ended 31 December 2019.

You have recently been appointed as assistant to the financial controller of Frank plc, a manufacturing company. He has asked you to help with the finalisation of the financial statements for the year ended 31 December 2018 and year ended 31 December 2019. (a) The Key Financial Information for Frank plc for the last two years are as follows: Year 2018 Year 2019 Cash E 30,000 E20,000 Accounts Receivables 200,000 260,000 Inventory 400,000 480,000 Property, Plant and Equipment 800,000 800,000 Total Assets 1,430,000 1,560,000 Accounts Payable 230,000 300,000 Accruals 200,000 210,000 Short-term debt 100,000 100,000 Long-term debt 300,000 300,000 Share Capital 100,000 100,000 Retained Earnings 500,000 550,000 Total Liabilities and Shareholders Equity 1,430,000 1,560,000 Sales E4,000,000 E4,300,000 Cost of goods sold (3,200,000) (3,600,000) Gross profit 800,000 700,000 Administrative, & selling expense (300,000) (310,000) Interest (15,000) (15,000) Taxes (185,000) (175,000) Net Profit 300,000 200,000 Calculate the following financial ratios for 2018 and 2019, using the figures above: i. Gross profit margin ii. Current ratio iii. Acid test ratio iv . Trade receivables collection period V . Inventory holding period vi. Interest cover ratio (b ) Using the ratios calculations in Question 2 (a) above, critically assess the financial health of Frank plc from the perspective of a potential supplier. (c) Critically discuss what non-financial information you would be looking into the annual report of Frank plc from the perspective of an investor. Suppose you are a potential investor in Frank pic, and, you are looking for non-financial information in the annual report. Note: You need to assume what non-financial information in an annual report are generally considered relevant for investment decisions, as the actual annual report of Bates plc is not provided in this case. (d) Critically evaluate the usefulness and the limitations of financial ratio analysis