The summarised Balance Sheet and Profit and Loss Account of Alba pic for 1984 are given below:

Required

(a) Compute each of the above ratios for Alba pic for 1984 (and 1983 where available).

(b) Comment on any differences betwen the ratios for Alba and the industrial averages and identify any areas to which the management of Alba pic should pay specific attention.

(c) Using a total assets figure of £100, prepare in a summarised form, a Balance Sheet and Profit and Loss Account based on the 1984 industry averages.
Assume that the typical company in the industry grouping has no preference capital and pays interest at the rate of 10 per cent on any debenture capital outstanding. Assume further that the industry average ratios have been calculated based on closing Balance Sheet figures .