14 The following are extracts from the financial statements of Alcander Ltd: Statement of Profit and Loss for the Year Ended 31st December 2019 Revenue 450,000 Opening inventory 6,000 Purchases 200,000 Closing inventory (11,000) Cost of sales (195,000) Gross Profit 255,000 Operating (115,000) expenses Operating profit 140,000 Interest payable (40,000) Profit before tax 100,000 Statement of Financial Position as at 31st December 2019 Inventory Trade receivables Bank overdraft Trade payables 11,000 43,500 (1,300) (28,300) Total assets less current liabilities 420,000 Requirements a) Give the formula and calculate the following SIX accounting ratios using the information above. Gross Profit Margin ROCE Inventory days Trade Payable days Quick Ratio Interest Cover (9 marks) b) Explain why each of the ratios chosen may be used to assess the performance of a business i.e. what information the ratio provides to help understand the performance of the business. (6 marks) c) The prudence concept is a fundamental accounting concept. Define the prudence concept and then explain the concept by giving an example