Finance

a) Hathan has just concluded a ratio analysis comparing its performance and position at 31 December 2021 with those at 31 December 2020 . The directors are concerned to see that the current ratio and quick ratio show a considerable decline. Required: (i) State and explain TWO possible causes for the decline in one or both of these ratios. (3 Marks) (ii) State and explain TWO ways in which the company could improve these ratios. (2 Marks) b) The ASB's statement of principles notes that the financial statements are intended to provide information to a 'wide range of users'. Required: Identify two different users of financial statements, and their respective needs. ( 2 marks) c) The following output levels and production costs have been recorded over the last three periods: Required: Using the high-low method, estimate the: (i) variable costs per unit. ( 2 marks) (ii) total fixed costs per period. ( 2 marks) (iii) total costs that would be incurred in a period at an output of 8,500 units. ( 2 marks)