The following information has been obtained from the financial statements of a company:
| Particulars |
Year 1 |
Year 2 |
| Cash |
200 |
160 |
| Sundry Debtors |
320 |
400 |
| Short-term Investments |
200 |
320 |
| Stock |
1840 |
2160 |
| Prepaid expenses |
28 |
12 |
| Total current assets |
2588 |
3052 |
| Total assets |
5600 |
6400 |
| Current liabilities |
640 |
800 |
| Loans |
1600 |
1600 |
| Capital |
2000 |
2000 |
| Retained Earnings |
468 |
812 |
Statement of Profit for the current year
| Sales |
4000 |
| Less: Cost of Goods sold |
2800 |
| Less: Interest |
160 |
| Net Profit |
1040 |
| Less: Taxes @50% |
520 |
| Profit after Taxes |
520 |
| Profit distributed |
220 |
On the basis of the above information, evaluate the financial position of the company w.r.t.:
(i) Liquidity
(ii) Leverage
(iii) Profitability
(iv) Activity
