The following financial statements relate to Hope plc:

Required

(a) Calculate ratios which measure:
(i) liquidity and the use of working capital;
(ii) management performance; and (iii) gearing.

(b) Explain how each ratio would help in understanding the financial position and results of the company.

(c) The market price is currently 1,100 pence per share. Calculate ratios which are useful to investors.

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Income statement (profit and loss account) for the year ended 30 June Year 4 Revenue Cost of sales Gross profit Administration and selling expenses Operating profit Debenture interest Taxation Profit before taxation Profit for equity holder 000s 000s 6,200 (2,750) 3,450 (2,194) 1,256 (84) 1,172 (480) 692 The directors have recommended a dividend of 36.7 pence per share in respect of Year 4, to be paid following approval at the next annual general meeting.