A Using the following statement of financial position and income statement, calculate and comment on ten accounting ratios (ignore taxation):

Statement of Financial Position as at 31 March 2012 ( $£ 000$ )

Non-current assets Equipment at cost 600 Less Depreciation to date (200)

400 Current assets Inventory 300 Accounts receivable $\quad 60$

Bank -

360 Total assets $\quad \frac{360}{760}$

Current liabilities Accounts payable 160 Dividends payable 12 Bank overdraft $\quad \frac{168}{340}$

340 Non-current liabilities

$5 \%$ Loan notes

(100)

Net assets $\quad \underline{\underline{320}}$

Equity Share capital - ordinary shares of 50 p each 250 Reserves General reserve 40 Retained profits $\frac{30}{320}$

Income Statement for period ending 31 March 2012 ( $\mathbf{£ 0 0 0}$ )

Revenue 2,000 Less Cost of goods sold Opening inventory 250 Add Purchases 1,450 1,700 Less Closing inventory

(300)

Gross profit Less Depreciation 80 Other expenses ..... 477 Operating profit

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Operating profit Loan-note interest Profit for the year 43 (5) 38