The following financial statements have been provided for Ozone Limited,a manufacturer of food products, as at 31 December 2020 (with comparatives): Ozone Limited Statement of Financial Position as at 31 December ????????????????????????????????????????????2020 ???????????019 ????????????????????????????????????????????’m ????????????’m Non-Current Assets Property, Plant & Equipment??????????????????????230 ????????????????????????????????????180 Total Non-Current Assets????????????????????????30 ????????????????????????????????????180 ?urrent Assets Inventories ???????????????????????????????????19.5 ??????????????????5.2 Trade Receivables ??????????????????????????????4.2 ????????????????????????4.7 Cash & Cash Equivalents ??????????????????????????.24????????????????????????????12.4 Total Current Assets ???????????????????????????41.94????????????????????????????42.3 ?OTAL ASSETS ??????????????????????????????71.94?????????????????????222.3 ?quity & Liabilities?quity Share Capital??????????????????????????????????0 ??????????????????????????0 Share Premium ????????????????????????????????10 ??????????????????????????? Retained Earnings ??????????????????????????????65.29 ??????????????????????63.5 Total Equity???????????????????????????????????55.29??????????????????????18.5 ?on-Current Liabilities Long-Term Loan Total Non-Current Liabilities??????????????????????100 ?????????????????????????????????????0 ????????????????????????????????????????????100 ?????????????0 Current Liabilities Trade Payables ????????????????????????????????15.9 ????????????????????????3.3 Current Tax Payable???????????????????????????????75??????????????????????????????.5 Total Current Liabilities ??????????????????????????6.65????????????????????????????13.8 ??????Total Equity & Liabilities????????????????????????71.94?????????????????????????????????222.3 ?Other Relevant Information ??????????????????????’m ????????????????????????????????????’m Revenue ?????????????????????????????????????86.4 ??????????????????1.1 Cost of Sales??????????????????????????????????68.99?????????????????????67.074 Administrative Expenses ??????????????????????????2.46????????????????????????????2.146 Distribution Costs ???????????????????????????????4.75???????????????????????.08 Finance Costs???????????????????????????????????.3 ?????????????????????????.6 Income Tax ?????????????????????????????????????71??????????????????.4 Profit after Tax ?????????????????????????????????4.19???????????????????????.8??Dividends Paid ?????????????????????????????????.4 ?????????????????????????.7 ??Required: using the above information -?a)??????alculate six appropriate ratios in order to comment on, and critically assess, the liquidity, profitability and gearing of Ozone limited.?b)?????Review the above financial statements and identify any additional long-term funding raised by Ozone limited in 2020. Indicate where this funding was spent.?c)??????dentify and critically discuss the main limitations of ratio analysis as a means of assessing the financial performance of a business.?AccountingBusinessManagerial AccountingMGMT 2020
