Aumpong Heroes PLC

Statement of affairs as at 31/12/2015

Non-current assets $ $

Machinery & Equipt 3,900

Computers 400

7,900

Inventory 1,700

A/C receivables 2,500

Bank 4,600

Cash 2,000

3months readily marketable investment 2,200

13,000

Current Liabilities;

7months loan 1,500

Bank overdraft 200

1,700

Net working capital 11,300

Total assets 19,200

Non Current Liabilities;

Loan from Aba 2,700

Capital 16,500

Total assets 19.200

Required;

(i) calculate the gearing ratios of the company from the various methods and comment on the results.

(ii) Estimate the liquid ratios of the company.

(ii) Assuming the capital at the beginning of the year was $13,000;

(a) Calculate the return on employed of the company.

(b)Return on net working capital

(c) Return on total assets.