QUESTION $3$

$(40$ Marks$)$

You are provided with the financial indicators calculated from the financial statements of Small LTD for the past two years ended $30$ April. The business uses the perpetual inventory system to value stock and a gross profit mark$-$up of $75\%$ on cost$.$

$\backslash$table$[[,2022,2021],[$Solvency ratio,$3\mathrm{.}0$:$1,3\mathrm{.}2$:$1$