Self-test The following financial statements relate to November plc for the financial years ending 31 March.

Balance sheets as at 31 March 2009 2010 Fixed assets £000 £000 £000 £000 Land and buildings at cost 651 651 Fixtures and fittings at cost 189 195 Less accumulated depreciation 61 128 103 92 779 743 Current assets Stock at cost 520 670 Trade debtors 280 219 Bank 39 47 839 936 Creditors: amounts due within one year Trade creditors 229 247 Dividends proposed 48 72 Corporation tax due 103 109 380 459 428 508 1,238 1,251 Creditors: amounts due in more than one year 10% debentures 300 100 938 1,151 Capital and reserves

£1 ordinary shares 680 680 General reserve 37 44 Retained profit 221 427 938 1,151 Profit and loss accounts for the years ended 31 March 2009 2010

£000 £000 £000 £000 Sales 2,340 2,984 Less cost of sales Opening stock 441 520 Purchases 1,986 2,563 2,427 3,083 Less Closing stock 520 1,907 670 2,413 Gross profit 433 571 Expenses excluding interest 76 167 Interest payable 30 106 10 177 Net profit before tax 327 394 Less corporation tax 103 109 Net profit after tax 224 285 Retained profit brought forward 45 221 269 506 Less:

Transfer to general reserve 7 Dividends proposed 48 72 Retained profit carried forward 221 427 Notes:

All sales and purchases are made on credit.

The market value of the shares of the company at the end of each year was

£2.50 and £3.50 respectively.

You are required to calculate the following ratios:

(a) Working capital ratio

(b) Acid test

(c) Debtors’ collection

(d) Creditors’ payment

(e) Gross profit %

(f) Net profit %
(g) ROCE (h) Earnings per share (i) Gearing (j) Interest cover (k) Stock turnover