3. Builders Federation Average ratios for federation members 2017 % Return on capital employed 26.0% Asset turnover 1.79 times Net prot margin 14.5% ii Current ratio 1.5:1 Acid test ratio 1.03:1 Debtors collection period 83 days Gearing ratio 32.0% i Labour cost % of sales ' 18.1% ' Operating cost % of sales ' 85.5% Distribution costs % of sales ' 9.5% Admin costs % of sales 4.5% i Questions In your role of planning assistant you are to prepare an analysis of the company's figures over the three- year period using the performance criteria listed in the inter-firm comparison table. 1. Calculate all the ratios given in the average ratios for federation members for 2015, 2016 and 2017. 2. Prepare a detailed report on the company's performance in terms of profitability and liquidity compared with the average of the sector over the period