A The following are the financial statements of D Limited, a wholesaling company, for the year ended 31 December:

\begin{tabular}{|c|c|c|c|c|}

\hline Income Statements & 2013 & 2013 & 2014 & \begin{tabular}{l}

2014 \\

f 000

\end{tabular} \\

\hline Revenue - credit sales & 2,200 & & 2,640 & \\

\hline \begin{tabular}{l}

cash sales \\

Cost of sales

\end{tabular} & 200 & \begin{tabular}{l}

2,400 \\

$(1,872)$

\end{tabular} & 160 & \begin{tabular}{l}

2,800 \\

$(2,212)$

\end{tabular} \\

\hline \begin{tabular}{l}

Gross profit \\

Distribution costs \\

Administration expenses

\end{tabular} & & \begin{tabular}{c}

528 \\

$(278)$ \\

$(112)$ \\

\end{tabular} & & \begin{tabular}{r}

588 \\

$(300)$ \\

$(114)$ \\

\end{tabular} \\

\hline \begin{tabular}{l}

Operating profit \\

Interest payable \\

Profit before tax

\end{tabular} & & \begin{tabular}{r}

138 \\

138 \\

\end{tabular} & & \begin{tabular}{r}

174 \\

$(32)$ \\

142 \\

\end{tabular} \\

\hline Statements of Financial Position as at 31 December & \begin{tabular}{l}

2013 \\

$£ 000$

\end{tabular} & \begin{tabular}{l}

2013 \\

$£ 000$

\end{tabular} & \begin{tabular}{l}

2014 \\

$£ 000$

\end{tabular} & \begin{tabular}{l}

2014 \\

$£ 000$

\end{tabular} \\

\hline Tangible non-current assets & & 220 & & 286 \\

\hline \begin{tabular}{l}

Current assets: Inventory \\

Accounts receivable

\end{tabular} & \begin{tabular}{l}

544 \\

384

\end{tabular} & & \begin{tabular}{l}

660 \\

644

\end{tabular} & \\

\hline Total assets & 8 & $\frac{936}{1,156}$ & 110 & $\frac{1,414}{1,700}$ \\

\hline \begin{tabular}{l}

Current liabilities: \\

Trade accounts payable \\

Non-current liabilities

\end{tabular} & 256 & & 338 & \\

\hline Loan notes & $工$ & \begin{tabular}{l}

$(256)$ \\

900 \\

\end{tabular} & $\underline{320}$ & $\frac{(658)}{\underline{1,042}}$ \\

\hline

\end{tabular}

The following information should be taken into consideration.

1 You may assume that:

(i) the range of products sold by D Limited remained unchanged over the two years;

(ii) the company managed to acquire its products in 2014 at the same prices as it acquired them for in 2013;

(iii) the effects of any inflationary aspects have been taken into account in the figures.

2 Ignore taxation.

3 All calculations must be shown to one decimal place.

You are required, using the information above, to assess and comment briefly on the company, from the point of view of:

(a) profitability;

(b) liquidity.