A The following information has been extracted from the accounts of Witton Way Ltd:

Income Statement for the year ending 30 April Additional information:

During the year to 30 April 2012, the company tried to stimulate sales by reducing the selling price of its products and by offering more generous credit terms to its customers.

Required:

(a) Calculate six accounting ratios specifying the basis of your calculations for each of the two years to 30 April 2011 and 2012 respectively which will enable you to examine the company's progress during 2012.

(b) From the information available to you, including the ratios calculated in part

(a) of the question, comment upon the company's results for the year to 30 April 2012 under the heads of 'profitability', 'liquidity', 'efficiency' and 'shareholders' interests'.

(c) State what additional information you would require in order to assess the company's attempts to stimulate sales during the year to 30 April 2012.

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Statement of Financial Position at 30 April 2011 2012 000 000 Non-current assets Tangible assets 10,050 11,350 Current assets Inventory 1,500 2,450 Trade accounts receivable 1,200 3,800 Cash 900 50 3,600 6,300 Total assets 13,650 17,650 Current liabilities: accounts payable (2,400) (2,700) Non-current liabilities Loans and other borrowings (350) (3,350) Total liabilities (2,750) (6,050) Net assets 10,900 11,600 Equity Called-up share capital 5,900 5,900 Retained profits 5,000 5,700 10,900 11,600