question is

Using the information provided above evaluate the companys performance and position using financial ratio analysis.

The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below.Hunter LimitedStatement of profit or loss and other comprehensive income for the year ended 31 December 2019

	2019 R		2018 R
Revenue from sales	540 000		480 000
Cost of Sales	(360 000)		(318 000)
Opening Inventory	42 000		30 000
Purchases	390 000		330 000
Goods available for sale	432 000		360 000
Closing Inventory	(72 000)		(42 000)
Gross Profit	180 000		162 000
Selling and distribution expenses	(37 000)		(36 000)
Administration expenses	(72 000)		(54 000)
Interest on loan	(3 000)		(3 000)
Profit before taxation	68 000		69 000
Taxation paid	(20 400)		(20 700)
Profit for the year	47 600		48 300
Other comprehensive income	Nil		Nil
Total comprehensive income for the year	47 600		48 300

Hunter Limited

Statement of changes in equity for the year ended 31 December 2019

	Ordinary Share capital	Retained earnings	Preference share capital	Total
Balance at 1 January 2018	120 000	12 000	60 000	192 000
Total comprehensive income	-	48 300	-	48 300
Preference dividends paid	-	(6 000)	-	(6 000)
Ordinary dividends declared	-	(24 000)	-	(24 000)
Balance at 31 December 2018	120 000	30 300	60 000	210 300
Total comprehensive income	-	47 600	-	47 600
Preference dividends paid	-	(6 000)	-	(6 000)
Ordinary dividends declared	-	(15 000)	-	(15 000)
Balance at 31 December 2019	120 000	56 900	60 000	236 900

Hunter LimitedStatement of financial position as at 31 December 2019