Executive Cars PLC have produced their Annual Report and Accounts for the year to 31 December 2018 Statement of Profit or Loss 2018 2017 K .000 K, 000 8,304 7,465 (6,462) (5,778) 1.842 1,687 (206) (197) (412) (568) Turnover Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Income from investments Profit before tax Taxation Profit after tax 1,068 1,078 140 135 1,208 1,213 (374) (337) 834 876 Dividends (172) (241) Retained profit 662 635 1,766 870 484 1,562 Statement of financial position Non-current assets 2,374 Current assets Inventory 1,047 Receivables 432 Cash at bank 2716 4,195 Creditors: A mounts falling due within one year (3,462) Net current assets 733 Total assets less current liabilities 3,107 Creditors: Amounts falling due after more than 1 year (775) 2.332 2.916 (2,342) 574 2,340 (670) 1,670 2018 2017 K'000 K'000 452 452 Capital and reserves Called-up share capital Share premium Retained profit 28 28 1.852 1,190 2,332 1,670 Share capital comprises 1.808,000 ordinary shares of 25 ngwee each. Following the publication of these results, the market price stands currently at K5.80 per share compared to K4.50 a year ago. Your father has a holding of 10,000 ordinary shares in Executive Cars PLC. He is disappointed with the lack of growth in operating profits, together with the large cut in dividends. He asks your advice on the strength of the company in comparison with 2017 results. Required: a) Carry out a full ratio analysis on the accounts of Executive Cars PLC, paying particular attention to the areas of liquidity (Current and Acid test ratios), profitability( Gross profit, Profit Margin, ROCE , Return On Equity ratios), efficiency( Inventory days, Trade Accounts Receivables days. Trade Accounts Payables days. Asset Turn over ratios) and debt and gearing ( debt and gearing ratios). Provide a commentary on the ratios you have calculated ( 20 marks) b) Conclude your analysis by advising your father on the key stock market ratios, outlining your overall impression of the company's performance( 10 marks)