INTERPRETATION OF FINANCIAL INFORMATION. $-$ RATIO ANALYSIS

The following balances were extracted from the books of Chanda at $\frac{31}{12}\frac{?}{23}$

Buildings at cost $K240000$

Plant at cost K$160000$

Accumulated Depreciation:

On Buildings K$40000$

On Plant K$76000$

Purchases K $500000$

Sales K$808800$

Inventory K$100000$

Discount Allowed K$36000$

Discount Received K$9600$

Returns Inwards K$4400$

Returns Outwards K$30000$

Wages and Salaries K$117600$

Bad debts written off K$9200$

Other expenses K$45600$

Trade Receivables K $76000$

Trade Payables K$72000$

$10\%$ loan K$20000$

Cash K$3200$

Drawings K$48000$

Provision for Doubtful Debts K$1000$

Opening Capital K$280000$

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Additional information:

Closing inventory K $84000$

Wages and Salaries accrued K$1600$

Other expenses prepaid K $600$

Provision for Bad and Doubtful Debts to be adjusted to $5\%$ of Trade Receivables.

Depreciation for the Year to be calculated as follows:

Building $2\%$ per annum straight line

Plant $25\%$ per annum reducing balance

Required

Calculate the following Ratios:

Gross Profit Margin

Net Profit Margin

Return Capital Employed

Current Ratio

Acid Test Ratio

Receivables Days

Payables Days

Inventory Days

Asset Turnover

Gearing Ratio

Interest Cover

Debt Ratio

Debt Equity Ratio