5. As a finance manager calculate the following ratios from your company financial statements (additional information given below) and briefly explain the interpretation of numerical answers? (Answer page 7&8 for explanations font size 10) (12 Marks) (Answer page 6 for explanation, font size 12) (LO1) (8 Marks)

Calculate the following ratios with the help of additional information extracted from the financial statements for the year 2018. Briefly analyses the interpretations of the answer.

a. Return on equity ratio b. Gross profit ratio

Additional information: Net income=18000 Share holder equity=289000 Sales=100000 Cost of good sole=75000