2 Current liabilities (see note 2) Trade payables and accruals 65,000 132,801 65,000 132,801 505,000 916,801 The income statement and the statement of financial position for the year ended 31 March 2020 and 2021 for Ashuka Limited Income Statement for the year ended 31 March 2020 and 2021 | Total equity and liabilities Additional information: Note 1 Non-current assets are analysed as below: 2020 2021 000 000 Revenue Cost of sales Gross profit 1,200 1,800 (480) (936) 720 864 Lease costs (250) (250) Overhead costs (310) (332) Depreciation (20) (70) Profit before interest and tax 140 212 Interest charges (8) (20) Profit before tax 132 192 Taxation (33) (48) Profit for the year 99 144 Fixed assets at cost Accumulated depreciation Net 2020 2021 380,000 657,000 (30,000) (100,000) 350,000 557,000 No assets were sold during the year end 31st March 2021 Note 2 Note that trade payables and accruals shown in the statement of financial position are analysed as below: Trade payables Accruals Tax due 2020 2021 47,500 1,000 106,000 2,801 16,500 24,000 65,000 132,801 Statement of Financial position as at 31 March 2020 and 2021 Non-current assets (see note 1) Fixtures and fittings Computers Current assets Inventories Cash at bank 2020 2021 300,000 512,000 50,000 45,000 350,000 557,000 118,356 284,647 Trade receivables 9,863 73,973 26,781 1,181 155,000 359,801 Total assets 505,000 916,801 Equity Called-up ordinary share capital Retained profit 100,000 250,000 240,000 384,000 340,000 634,000 Non-current liabilities Bank borrowings 100,000 150,000 (a) Calculate the following ratios for 2020 and 2021 from the income statements and statements of financial position provided above (ratio formulas included at the end of the booklet). Gross profit margin Return on capital employed Current ratio Quick ratio Gearing ratio Interest cover ratio Average inventories turnover period Average settlement period for receivables (8 marks) (b) Using the information provided in the financial statements and the ratios that you have calculated, write a management report to the board of directors commenting on the company's operations for the financial year end 31st March 2021 compared to the previous year. 3 4