The outline statements of financial position of the Nantred Trading Co. Ltd were as shown below:

Additional information
The only other information available is that the revenue for the years ended 30 September 20X1 and 20X2 was £202,900 and £490,700, respectively, and that on 30 September 20X0 reserves were £26,100.
Required
a. Calculate, for each of the two years, six suitable ratios to highlight the financial stability, liquidity and profitability of the company.
b. Comment on the situation revealed by the figures you have calculated in your answer to (a) above.

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Statements of financial position as at 30 September 20X1 ASSETS 20X2 Non-current assets Premises Plant and equipment 98,000 65,000 162,000 105,000 260,000 40,000 Current assets Inventory Trade receivables Bank and cash 31,200 95,300 30,700 5,600 26,500 66,500 152,500 171,500 412,500 19,700 Total assets EQUITY AND LIABILITIES Equity Equity share capital Retained eornings Total equity Non-current liabilities 7% debentures Total non-current liobilities Current liabilities Trade poyables Current tax poyable Total current liabilities Total liabilities Total equity and liabilities 100,000 200,000 36,200 43,600 136,200 243,600 100,000 100,000 23,900 11,40013, 55,800 35,300 68,900 35,300168,900 171,500 412,500