Uffington Limited was formed on 1 January 2009. The company's unpublished income statement for 2009 and its balance sheet as at 31 December 2009 are as follows:

The company is about to embarl~ on an expansion programme which will require at least £6m for the purchase of new businesses and to support investment in increased inventory levels. The chairman of the company has called for an analysis of the 2009 figures before approaching possible sources of funding.
a Comment on the performance of Uffington Limited for the year ended 31 December 2009 and on its financial position at that date. Support your comments with eight relevant accounting ratios.
b Suggest, and comment on the suitability of, two alternative ways for the company to raise £6m.

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Uffington Limited Income statement for the year ended 31 December 2009 Revenue 670,000 Less Cost of sales Purchases 570,000 Less Closing inventory (90,000) 480,000 Gross profit 190,000 Administration expenses (117,350) Distribution expenses (21,600) (138,950) Operating profit 51,050 Finance costs Profit for the year Less Tax Profit after tax (5,600) 45,450 (5,450) 40,000