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 2080 ParticularsAmount…

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 2080 ParticularsAmount (Rs.)Revenue from operation1,000,000Cost of sales(600,000)Gross profit400,000Other income40,000Total440,000Distribution expenses(140,000)Administrative expenses(210,000)Operating profit90,000Financial cost(7,500)Net profit82,500 Statement of the financial position of a company for 2080 and 2081 Assets20802081Non-current assets:Property, plant, and equipment400,000500,000Intangible assets30,00020,000Investment (long-term)80,000105,000Total Non-current Assets510,000625,000Current Assets:Inventories / Stock60,00050,000Cash and cash equivalents30,00070,000Account receivable40,00030,000Trade and Other receivable30,00040,000Total current assets160,000190,000Fictitious assets--Total assets670,000815,000Equity:Share capital @Rs.100 each400,000450,000Reserve/Retained earnings90,000172,500Non-controlling interest--Total Equity490,000622,500Liabilities:Non-current liabilities:10% Loan and Borrowing120,000150,000Total non-current liabilities120,000150,000Current liabilities:Trade and Other payable30,00042,500Income tax payable--Provision30,000-Total current liabilities60,00042,500Total liabilities180,000192,500Total Equity and Liabilities670,000815,000 Required: Financial analysis for 2081: 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.