11. Answer the following questions (10 marks) a. Calculate the stock turnover ratios for JKL Ltd. for both years b. Examine the ways in which JKL Ltd. could improve its efficiency position. Profit & Loss account for JKL Ltd. for the year ended 31 December Year 2 Year 1 Sales revenue 1 000 850 Cost of goods sold 500 450 Net profit before interest and tax 400 360 Tax Dividends Retained profits 100 50 250 90 220 50 Figure 3.5.b Excerpts from JKL Ltd's Profit and Loss Account for years ended 31 December (figures in 5'000s) Balance sheet for JKL Ltd as at 31 December Year 2 Year 1 Fixed assets 600 500 50 Current assets Cash Debtors Stock Total current assets 200 200 150 350 700 250 500 Current liabilities 300 200 Net current assets (working capital) 400 300 Total assets less current liabilities 1 000 800 Long-term liabilities (debt) 250 250 Net assets 750 550 Financed by: Ordinary share capital Retained profits 110 250 500 50 Equity 750 550 Figure 3.5.a Balance sheet for JKL Ltd. as at 31 December (figures in S'000s)