402,200 Statement of Profit and Loss Sales Cost of Goods Sold Begining Inventory Purchases 50,000 235,000 285,000 (42,000 243,000 159,200 68,800 22,600 11,300 Ending Inventory Gross Profit Operating Expenses Wages and salaries Selling expenses Other operating expenses Depreciation Property Equipment Total operating expenses Operating Income Less: Interest paid Net Income 1,800 10,500 115,000 44,200 1,500 42.700 Statement of Equity Balance before adjustments Net Income Dividends paid Closing balance Ordinary Shares capital Retained profits 80,000 46,600 42,700 (24,000 80,000 65,300 126600 42700 -24000 145300 42,000 38,000 1,600 Statement of Financial Position Assets: Inventory (Dec 31) Trade Receivable Cash in hand and bank Total Current assets Property Accumulated Depreciation (20,000+1200) Equipment Accumulated Depreciation (38000+10500) Total Assets 81,600 120,000 (21,800) 80,000 (48,500) 129,700 211,300 Liabilities: Trade Payable 5% long term loan Total Liabilities 36,000 30,000 66,000 Equity (as in above statement to equity) Total Liabilities and Equity 145,300 211 300 2) Calculate the following ratios based on the financial statements prepared in Requirement 1): ROCE Gross profit margin Operating profit margin Current ratio Acid test ratio Trade receivable days! Trade payable days? Inventory days 3) Comment on the profitability, liquidity and efficiency compared to the previous year knowing that the previous year's ratios were the following: ROCE 35% Gross profit margin 37% Operating profit margin 15% Current ratio 1.8:1 Acid test ratio 0.8:1 Trade receivable days 43 days Trade payable days 60 days Inventory days 57 days 4) As the end of 2019 Woburn Ltd managers are thinking of expanding their business. In order to do this they would need to raise extra finance. Calculate Woburn's current level of gearing, and advise on suitable ways in which they may be able to obtain the necessary additional finance