The following are the financial statements of High Street Enterprises plc for last year and this year:

Calculate the suitable financial ratios for High Street Enterprises plc for last year and this year (use year-end figures where balance sheet items are involved) and use the ratios to comment on the performance and position of the business.

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Turnover Profit and loss account for the year ended 31 December Cost of sales Gross profit Operating expenses Operating profit (before interest and taxation) Interest payable Profit before taxation Taxation Profit after taxation Dividend paid Retained profit for the year Retained profit brought forward from the previous year Retained profit carried forward Last year 000 This year 000 15 600 24 160 (8 740) (12 564) 6 860 11 596 (5 296) 1564 1564 (316) 1 248 (500) 748 (8 572) 3 024 (132) 2 892 (518) 2374 (600) 1774 1 744 996 1 744 3 518