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Below are the financial statements for the year ended 31 December 2020 for Cengkih Enterprise.

Statement of Profit or Loss and Other Comprehensive Income

for the year ended 31^st December 2020

	2020 RM	2019 RM
Sales Revenue	215,000	300,000
Less: Cost of Goods Sold	(100,000)	(120,000)
Gross Profit	115,000	180,000
Add: Other Income	15,000	20,000
Less: Expenses:
Operating expenses	(50,000)	(60,000)
Administrative costs	(10,000)	(36,000)
Profit for the year	70,000	84,000

Statement of Financial Position as at 31^st December 2020

	2020 RM	2019 RM
Non-current Assets	148,000	89,000
Current Assets
Inventories	55,000	45,000
Accounts Receivable	60,000	40,000
Bank	-	13,000
Cash	5,000	6,000
	120,000	104,000
Total assets	268,000	193,000
Owners Equities
Capital	50,000	50,000
Retained Profit	94,000	10,000
Profit for the year	70,000	84,000
	214,000	144,000
Current Liabilities
Accounts Payable	40,000	44,000
Accruals	6,000	5,000
Bank Overdraft	8,000	-
Total Equities and Liabilities	268,000	193,000

question

Provide comments on the results of the ratios for both financial years.

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