David is grateful for the financial statements that you have prepared for him and wants to know if you could provide a further analysis and explanation of these statements. He is also curious how his new business is doing compared to his main competitor in the industry. You suggest that you could calculate some key financial ratios from his financial data and compare that with his competitor JB Ltd. You return with your analysis, prepared to answer any questions. MicroSystems Statement of Financial Performance For the month ended 31 July 2021 Sales revenue Less: Cost of sales Gross Profit $ 58,750 30,650 28,100 Less operating expenses: Advertising 2,800 Cleaning expense 140 Doubtful debts expense 1,714 Depreciation expense 375 Electricity expense 1,900 Insurance expense 350 Maintenance & repairs 230 Rent expense 5,000 Telecommunications expense 850 Training expense 120 Wages expense 2,850 16,329 Operating profit Interest expense Net profit 11,771 300 11,471 MicroSystems Statement of Financial Position As at 31st July 2021 $ $ $ ASSETS Current assets Accounts receivable 34,280 Less: Allowance for doubtful debts: 1,714 32,566 Prepaid rent 25,000 Prepaid insurance 3,850 Inventory 21,860 83,276 Non-current assets Office Equipment 890 Motor vehicles 24,000 Less: Accumulated depreciation 250 23,750 Fixtures & fittings 12,000 Less: Accumulated depreciation 125 11,875 36,515 Total assets 119,791 LIABILITIES Current liabilities Bank overdraft 520 Accrued expenses 2,750 Interest payable 300 Wages payable 950 Accounts payable 27,000 31,520 Non-current liabilities Bank loan 60,000 Total liabilities 91,520 Net Assets 28,271 EQUITY Opening Capital 24,000 Add: Profit 11,471 Less: Drawings 7,200 Closing Equity 28,271 Calculate the following ratios for MicroSystems for July 2021 based on your [corrected] / the above financial statements. Convert your figures to a percentage (%) where specified. Round your answers to one decimal place. You will need to record your numerator and denominator for each ratio in addition to your answer. - Gross profit margin (%) - Operating profit margin (%) - - Return on shareholders' funds (%) - Current ratio - Acid test ratio - Interest cover ratio