The XYZ Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit and Loss for the year 2080ParticularsAmount…

The XYZ Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit and Loss for the year 2080ParticularsAmount (Rs.)Revenue from operation6,00,000Cost of sales(400,000)Gross profit200,000Other income20,000Total220,000Distribution expenses(60,000)Administrative expenses(115,000)Operating profit45,000Financial cost(7,500)Net Profit37,500 Statement of the financial position of a company for 2079 and 2080Assets20792080Non-current assets:Property, plant, and equipment200,000250,000Intangible assets10,0007,500Investment (long-term)45,00055,000Total Non-current Assets:255,000312,500Current Assets:Inventories / Stock20,00030,000Cash and cash equivalents25,00030,000Account receivable20,00015,000Trade and Other receivable15,00020,000Total current assets80,00095,000Fictitious assets--Total assets335,000407,500Equity:Share capital @Rs.100 each200,000225,000Reserve/Retained earnings45,00082,500Non-controlling interest--Total Equity245,000307,500Liabilities:Non-current liabilities:10% Loan and Borrowing60,00075,000Total non-current liabilities60,00075,000Current liabilities:Trade and Other payable15,00025,000Income tax payable--Provision15,000-Total current liabilities30,00025,000Total liabilities90,000100,000Total Equity and Liabilities335,000407,500 Required: Financial analysis for 2080: a) Current ratio (2:1) b) Acid test ratio (1:1) c) Debt to total capital ratio (less than 40%) d) Stock turnover ratio (at least 8 times) e) Total assets turnover ratio (more than 1 time) f) Net profit margin (at least 12%) g) Return on assets (at least 5%) h) Return on equity (at least 7%) i) Average sales period (45 days or less than 45 days) j) Account receivable turnover ratio (at least 8 times) k) Comment on the above result.