Harold Smart, who is a small manufacturer trading as Space Age Projects, is very pleased with his recently completed financial results which show that a planned 20 per cent increase in turnover has been achieved in the last accounting year.

The summarised results relating to the last three financial years are as follows:

Since 30 September 2014, Harold Smart has not taken any drawings from the business.
Harold Smart has been invited recently to invest £150,000 for a five-year fixed term in government loan stock earning interest at 121/2 per cent per annum.
Notwithstanding his response to these financial results, Harold Smart is a very cautious person and therefore has asked a financial consultant for a report.

Required:

(a) A schedule of six accounting ratios or measures of resource utilization covering each of the three years ended 30 September 2017 of Space Age Projects.

(b) As financial consultant prepare a report to Harold Smart on the financial results of Space Age Projects given above including comments on the alternative future actions that he might take.

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Year ended 30 September Sales 2015 2016 2017 90,000 100,000 120,000 Cost of sales (74,000) (75,000) (92,000) Gross profit 16,000 25,000 28,000 Administrative overheads (3,000) (5,000) (6,000) Net profit 13,000 20,000 22,000 As at 30 September 2014 2015 2016 2017 Non-current assets: At cost 155,000 165,000 190,000 206,000 Provision for depreciation (42,000) (45,000) (49,000) (53,000) 113,000 120,000 141,000 153,000 Current assets: Inventory 3,000 4,000 7,000 30,000 Accounts receivable 14,000 19,000 15,000 10,000 Balance at bank 2,000 1,000 3,000 19,000 24,000 25,000 40,000 Current liabilities: Accounts payable 5,000 4,000 6,000 9,000 Bank overdraft 2,000 5,000 4,000 6,000 11,000