Income statements for the years ended 31 March 20x3 $'000 1,700 $'000 20x2 $'000 $'000 1,500 Sales Opening stock Purchases 240 1,150 1,390 290 200- 1,090 1,290 240 1,050 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 1,100 600 340 450 270 180- 30 20 230 160 REQUIRED: Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) (i) (iii) (iv) Acid test ratio; Current ratio; Creditors' repayment period (in days); Debtors' collection period (in days); Gearing ratio; Gross profit to sales percentage; Net profit (before interest and taxation) to sales percentage; and Return on capital employed (vi) (vii) (viii) Comment on the performance of E Limited over the two year period using the ratios calculated in (a) in terms of: (36 marks) (i) (ii) (iii) Liquidity Long term solvency/risk Profitability Income statements for the years ended 31 March 20x3 $'000 1,700 $'000 20x2 $'000 $'000 1,500 Sales Opening stock Purchases 240 1,150 1,390 290 200- 1,090 1,290 240 1,050 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 1,100 600 340 450 270 180- 30 20 230 160 REQUIRED: Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) (i) (iii) (iv) Acid test ratio; Current ratio; Creditors' repayment period (in days); Debtors' collection period (in days); Gearing ratio; Gross profit to sales percentage; Net profit (before interest and taxation) to sales percentage; and Return on capital employed (vi) (vii) (viii) Comment on the performance of E Limited over the two year period using the ratios calculated in (a) in terms of: (36 marks) (i) (ii) (iii) Liquidity Long term solvency/risk Profitability