Question 3120 Marks - Financial Ratio Analysis TEE Ltd Comparative Balance Sheet For the Year Endin March 31, 2019 and 2020 (Millions of Kwacha) MARCH 31,2019 MARCH 31, 2020 Assets Current assets Cash Accounts receivable Inventory Total Current Assets Gross fixed assets Less accumulated depreciation Net fixed assets Total Assets Liabilities and Owners Equity Current Liability Account payable Notes payable K2 16 22 KA K120 60 60 K100 KIO 10 26 K46 K124 64 60 K106 K18 10 K16 10 K26 20 18 Total Current liabilities Long-term debt Owner's equity: Common stock Retained earnings Total liabilities and owners' 40 14 K100 40 20 K106 equity TEE Ltd had a total credit sales of K126 million with a net income of k126 million for 2020 and paid a total cash dividends of k20million to their common stockholders Required: Calculate the following financial ratios for the TEE ltd using the information given in the table above for the year 2020. Show your workings (15 marks] a. Current ratio b. Acid test ratio c. Average collection period d Inventory holding period e Fixed asset turn over 1. Total asset turn over g Debt ratio h. Long-term debt to total capitalization Return on total assets Return on equity Discuss the limitation of financial ratios