Figure 3 contains a summary of DS Manufacturers Limited abbreviated profit statements and balance sheets for the past two years; together with additional information and performance indicators for their business sector as a whole for the period under review. 1. Summary Profit Statements $m Sm 2019 2020 4.90 5.30 4.17 4.43 Sales turnover Operating costs Operating profit before ( tax 0.73 0.87 0.24 0.30 Taxation Profit after tax 0.49 0.57 Dividends 0.12 0.16 Retained profit 0.37 0.41 N.B. The firm's detailed breakdown of costs is as follows: Years 2019 2020 Labour costs 0.93 0.98 Distribution costs 0.44 0.49 Administration costs 0.19 0.22 2. Summary Balance Sheets Sm Sm 2019 2020 2.40 2.77 Fixed assets Current assets 0.09 0.12 Stocks: Raw materials Finished goods Debtors Bank 0.40 0.43 1.14 1.32 0.03 0.04 1.66 1.91 Less Current liabilities 1.35 1.56 Net current assets 0.31 0.35 2.71 3.12 0.5 0.91 Capital and reserves Bank loans 2.21 2.21 2.71 3.12 3. Average ratios for Industry members 2020 % Return on capital employed 26.0% Asset turnover 1.79 times Net profit margin 14.5% Current ratio 1.5:1 Acid test ratio 1.03:1 Debtors collection period 83 days Gearing ratio 32.0% Labour cost % of sales 18.1% Operating cost % of sales 85.5% Distribution costs % of sales 9.5% Admin costs % of sales Figure 3: Financial information on DS Manufacturers Limited Required You are to prepare an analysis of the Ds Manufacturers Limited sures over the two year period using the business sector performance criteria listed in these statements Specially you are 1. Calculate all the ratios niven in the Average ratios for Industry members for 2019 and 2020 (1 mark) 2. Prepare a summary report on the company's performance in terms of prontability and liquidity compared with the industry avera es over the period (5 marks) Choose a File Figure 3 contains a summary of DS Manufacturers Limited abbreviated profit statements and balance sheets for the past two years; together with additional information and performance indicators for their business sector as a whole for the period under review. 1. Summary Profit Statements $m Sm 2019 2020 4.90 5.30 4.17 4.43 Sales turnover Operating costs Operating profit before ( tax 0.73 0.87 0.24 0.30 Taxation Profit after tax 0.49 0.57 Dividends 0.12 0.16 Retained profit 0.37 0.41 N.B. The firm's detailed breakdown of costs is as follows: Years 2019 2020 Labour costs 0.93 0.98 Distribution costs 0.44 0.49 Administration costs 0.19 0.22 2. Summary Balance Sheets Sm Sm 2019 2020 2.40 2.77 Fixed assets Current assets 0.09 0.12 Stocks: Raw materials Finished goods Debtors Bank 0.40 0.43 1.14 1.32 0.03 0.04 1.66 1.91 Less Current liabilities 1.35 1.56 Net current assets 0.31 0.35 2.71 3.12 0.5 0.91 Capital and reserves Bank loans 2.21 2.21 2.71 3.12 3. Average ratios for Industry members 2020 % Return on capital employed 26.0% Asset turnover 1.79 times Net profit margin 14.5% Current ratio 1.5:1 Acid test ratio 1.03:1 Debtors collection period 83 days Gearing ratio 32.0% Labour cost % of sales 18.1% Operating cost % of sales 85.5% Distribution costs % of sales 9.5% Admin costs % of sales Figure 3: Financial information on DS Manufacturers Limited Required You are to prepare an analysis of the Ds Manufacturers Limited sures over the two year period using the business sector performance criteria listed in these statements Specially you are 1. Calculate all the ratios niven in the Average ratios for Industry members for 2019 and 2020 (1 mark) 2. Prepare a summary report on the company's performance in terms of prontability and liquidity compared with the industry avera es over the period (5 marks) Choose a File