4 Giltex plc is a Public Limited company. Its most recent financial statements for two years are as follows: Statement of profit or loss for the year ended 31 March 2018 2019 $ $ Revenue 510,000 345,000 Cost of sales 296,000 207,000 Gross profit 214,000 138,000 Distribution costs 54,000 37,000 Administration expenses 42,000 29,000 Finance costs 13,000 2,000 Profit before tax 105,000 70,000 Income tax 45,000 20,000 Profit for the year 60,000 50,000 Statement of financial position as at 31 March Non-current assets 2019 2019 2018 2018 $ $ $ $ 314,000 108,000 Property, plant and equipment Current assets Inventory 72,000 Trade receivables 88,000 Bank Total assets 36,000 28,000 80,000 160,000 144,000 474,000 252,000 Equity and liabilities Equity Equity share of $1 each 100,000 100,000 Retained earning 90,000 45,000 Total equity 190,000 145,000 Non-current liabilities 6.5% loan notes 200,000 30,800 Current liabilities Trade payables 36,000 52,000 Bank overdraft 4,000 Current liabilities 44,000 24,000 84,000 76,200 Total equity and liabilities 474,000 252,000 Required: (a) Calculate the following ratios for Giltex Plc, Clearly stating the formula used for each ratio. Profitability ratios: Gross profit margin Operating profit margin Asset turnover ratio Liquidity ratios Quick ratio Receivables collection period Inventory holding period Long term solvency ratio Gearing Interest cover (12 Marks) (b) Comment on the performance of the company for the two years indicated by the ratios calculated in (a) above. (8 Marks) Total (20 Marks)