The following financial statements have been produced for Lisus Ltd at 31 March 20*8:

All sales are credit sales.

Required

Calculate:

a) Gross margin
b) Net profit margin
c) Return on capital employed
d) Net current asset ratio
e) Liquid (acid test) ratio
f) Rate of stock turnover (use closing inventory)
g) Debtors’ collection period
h) Gearing ratio.

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Revenue Less cost of sales Gross profit Less expenses Operating profit Finance costs Profit for the year before tax Taxation Dividends Retained profit for the year Balance sheet at 31 March 20*8 Assets Non-current assets at NBV Current assets Inventories Trade receivables Income statement for the year ended 31 March 20*8 £000 £000 £000 16,620 12,630 3,990 Current liabilities Trade payables Tax and dividends Loans repayable within 12 months Non-current liabilities 7% debentures (2013) Shareholders' equity Ordinary shares of £1 each Retained earnings and other reserves 3,850 1,440 2,480 800 640 4,120 4,070 8,190 7,770 2,254 1,736 266 1,470 1,440 30 14,200 420 14,620 3,800 10,820 8,300 2,520 10,820