2. Astra Limited manufactures nuts and bolts, which are sold to industrial users. The financial statements for 2016 and 2017 are as follows: Income statements for the year ended 31st December Revenue Cost of sales Gross profit Operating expenses Depreciation Operating profit Interest Profit before taxation Taxation Profit for the year 2016 000 1,180 (680) 500 (200) (66) 234 ) 234 (80) 154 2017 000 1,200 (750) 450 (208) (75) 167 (8) 159 (48) 111 500 Statements of financial position as at 31 December 2016 2017 E000 000 ASSETS Non-current assets Property, plant and equipment 202 687 Current assets Inventories 148 236 Trade receivables 102 156 Cash 3 4 253 396 Total assets 955 1083 EQUITY AND LIABILITIES Equity Ordinary share capital (E1 shares, Fully paid) 500 Retained earnings 256 295 756 Non-current liabilities Borrowing bank loan 50 Current liabilities Trade payables 60 76 Other payables and accruals 18 16 Taxation 40 24 Short-term borrowings (all bank overdraft) 122 199 239 Total equity and liabilities 955 1083 Dividends were paid on ordinary shares of 70,000 and 72,000 in respect of 2016 and 2017 respectively . Where there is no Purchases, please use cost of sales. al Calculate the following ratios for both 2016 and 2017 (using year-end figures for statement of financial position items Return on capital employed (4 marks) Operating profit margin (4 marks) Gross profit margin (4 marks) Current ratio (4 marks) Acid test ratio (4 marks) Settlement period for trade receivables (4 marks) Settlement period for trade payables (4 marks) Inventories turnover period (4 marks) (32 marks) b) Comment on the performance of Astra Limited from the viewpoint of a business considering supplying a substantial amount of goods to Astra Limited on usual trade credit terms