The following is a summary of the information in the financial statements of ABC Ltd for the years 2018 and 2019. 

The manager of ABC Ltd has given the following information relating to the firm: 

1. Suggest possible reasons for the change in ROA. 

2. Comment on the changes in liquidity during the period. 

3. What changes have taken place in the firm’s long-term financial position during the period? 

4. Why does a great deal of care need to be taken in the use and interpretation of financial ratios?

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Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Shareholders' equity Total liabilities and shareholders' equity Sales Expenses Net profit (before interest and tax) Interest Tax payable Net profit after tax 2019 $000 50 350 400 50 210 140 400 800 752 48 13 14 21 2018 $000 100 200 300 50 150 100 300 750 720 30 10 8 12