The ABC 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 2022 ParticularsAmount…

The ABC 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 2022 ParticularsAmount (Rs).Revenue from operation900,000Less: Cost of sales(500,000)Gross margin400,000Add Other income50,000Total450,000Less: Distribution expenses(105,000)Less: Administrative expenses(235,000)Operating Profit110,000Less: Finance cost10,000Net profit100,000Statement of Financial Position of a company for 2021 and 2022 Assets20212022Non-Current Assets:Property, plant and equipment400,000500,000Intangible assets40,00030,000Investments (long term)60,00090,000Total Non-Current Assets500,000620,000Current Assets:Inventories/Stock40,00050,000Cash and cash equivalents40,00030,000Account receivables50,00060,000Trade and Other receivables40,00055,000Total Current Assets170,000195,000Fictitious AssetsTotal Assets (Total Non-current and Current Assets)670,000815,000Equity:Share capital @Rs.100 each400,000500,000Reserve/Net Profit90,000190,000Non-controlling interestsTotal Equity490,000690,000LiabilitiesNon-Current Liabilities:10% Loans and borrowings150,000100,000Total Non-Current Liabilities150,000100,000Current Liabilities:Trade and other payable20,00025,000Income tax liabilitiesProvisions10,000Total Current-Liabilities30,00025,000Total Liabilities (Total Non-current and Current)180,000125,000Total Equity and Total Liabilities670,000815,000Required for 2022: 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 equity (at least 7%) h. Return on assets (at least 5%) i. Average sales period (45 days or less than 45 days) j. Account receivable turnover ratio (at least 8 times) k. Comment on the results