Calculate - Return on equity - Return on investment - Gross profit margin - Fixed assets turnover ratio - Net current assets turnover - Current ratio - Acid test ratio - Stock turnover - Debt/equity - Interest cover - Earning per share - Dividend

Mr Able, a potential investor, is considering purchasing ordinary shares in Evolution plc, a company which manufactures toys. Mr Able has approached you for advice. You are provided with extracts from Evolution ple's financial statements for the previous two years as follows: Year to 31 Dec 2004 Year to 31 Dec 2005 000 000 Sales Purchases Opening stock Closing stock Expenses Tax on profits Proposed dividends Fixed assets Current assets Current liabilities 300,000 ordinary shares of 1 100,000 8% preference shares of 1.50 Share premium Profit and loss reserves 12% Debentures 2,000 1,570 350 400 359 29 42 500 780 370 300 150 10 200 200 2,600 2,090 400 550 474 54 42 670 893 563 300 150 10 250 200 In addition you are given the following information: 1. All Evolution ple's sales are credit sales, and all its purchases are credit purchases. 2. Expenses include interest payments. The profit and loss reserve figures are the opening balances. 3. 4. The market value of the company's shares at 31 December 2004 was 175p per share, and at 31 December 2005 the market value was 225p per share