2017: Question 2 (20 Marks)

Extracts of the financial statements of Los Angeles Limited for 2016 are given below. INFORMATION

Required: Calculate the following ratios for 2016. Where applicable, round off answers to two decimal places. 2.1 Operating profit on turnover (2 marks) 2.2 Current ratio (3 marks) 2.3 Acid test ratio (3 marks) 2.4 Interest cover (3 marks) 2.5 Return on assets (3 marks) 2.6 Earnings per share (3 marks) 2.7 Return on equity (3 marks)