BS MIF208 [Compatibility Mode] - Word Sign in File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do & Share Cambria - 12 - A A Aa - A 3. A AL AaBbcc AaBbccI AaBb AaBbCcI AaBbCcDc AaB 11 Default 1 Normal Title 1 No Spac... 1 No Spac... Heading 1 Cut LE Copy Format Painter Clipboard Paste BIU - abc x, x? abe x x A aly - A-A TE, Find - abc Replace Select- Editing Font Paragraph Styles 1.1.1.1.1.1.2.1.3.1.4.1.5.1.6.1.7.1.8.1.9.1. 10:1:11:1. 12. 1. 13.1.14. 1.15.1.16. 17:1.18.1.19 Current ratio Acid test ratio Debt ratio Time interest earned INDUSTRY AVERAGE RATIOS 2 times Inventory turnover 3.6 times 1.1 times Average collection period 63 days 54.99 Net profit marin 4.1496 2.4 times Return on equity 9.39 16:1.15.1.14.1.13.1.12 | STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 (S'000) Cash 1.400 Accounts payable 3.000 Marketable securities 300 Notes payable 3.400 Accounts receivables 10,000 Accrued wages and salaries 3.100 Inventories 12,000 Current portion of long term debt 500 Prepaid expenses 300 Total current liabilities 10.000 Total current assets 24,000 Deferred income taxes 1.500 Plant and equipment 14.300 Mortgage 6,300 Accumulated depreciation 7.300 Term loans 2.900 Total fixed assets 7.000 Total long term liabilities 10 200 Total assets 31.000 Share capital 2,100 Retained earning 8.200 Total equity 10,300 Total liabilities and equity 31,000 STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 2015 (S'000) Net sales 51.000 Cost of good sold 38.000 Gross profit 13.000 Operating expenses 9,000 Net operating income 4.000 Interest expense 1,000 Earnings before taxes 3.000 Income taxes Earnings after taxes 1,800 a) | Compute the relevant ratios from the financial statements provided above. (16 marks) Based on your answer in (a) above, analyse the firm's financial performance as compared to the industry average ratiosgiven. (5 marks) Give any TWO (2) advantagesand limitations of ratio analysis?[4 Marks) b) c) Page 1 Page 1 of 4 635 words DX English (United States) + 90% 1 O Search for anything W oo