Compute ratios and compare them with industry averages. Using the ratios calculated and industry averages, analyse the liquidity position, operational efficiency, profitability, and long-term solvency. Balance Sheet

As of 30 June	2022	2021	2020
Assets
Current Assets
Cash and cash equivalents	23547	30817	30212
Accounts Receivable	265235	212345	180971
Inventories	356800	322,500	245,200
total current assets	645,582	565,662	456,383
Non-current assets
Fixed assets (net of depreciation)	786,082	590,467	698,258
Total Assets	1,431,664	1,156,129	1,154,641
Liabilities and Equity
Current Liabilities
Accounts Payable	170,540	119,873	115,800
Other Payables	17300	15200	13658
Total Current liabilities	187,840	135,073	129,458
Non Current liabilities
Long term borrowings	135,476	230,552	417,993
Total Liabilities	323,316	365,625	547,451
Equity
Equity Share Capital	450,435	450,435	450,435
Retained earnings	657,913	340,069	156,755
total equity	1,108,348	790,504	607,190
Total liabilities and equity	1,431,664	1,156,129	1,154,641
Closing Balance		2019
Accounts Receivable		185,000
accounts payable		114,523
total equity		455,000
total assets		1,255,000

Income Statement

Ending 30 June	2022	2021	2020
Sales
Cash	34,589	74,568	85,420
Credit	1,238,231	735,410	665,822
Total sales	1,272,820	809,978	751,242
Cost of goods sold	602,514	420,320	428,970
Gross Profit	670,306	389,658	322,272
Operating Expenses:
Salaries and wages	102,000	83,000	65,000
General, administration and selling expenses	109,995	56,224	44,941
Depreciation	115,617	52,470	43,076
Interest expenses (on borrowings)	24,850	14,650	12,500
Net Profit	317,844	183,314	156,755

Industry averages

Ratio	Average
Current ratio	2.3
Acid test ratio (quick ratio)	1.2
Receivable turnover ratio	8 times
Receivable days	46 days
Inventory turnover ratio	4.5 times
Inventory days	81 days
Gross profit ratio	40%
Net profit ratio	18%
Return on equity	31%
Return on total assets	12%
Long-term debt to total capital	24%
debt-assets ratio	0.55
Debt-to-equity ratio	0.35
Interest coverage ratio (times interest earned)	12