1. Morning star plc. is a manufacturer of computer accessories. The following are selected items appearing in the income statement and balance sheet for the year ended December 31^st, 2015.

Income Statement
Net Sales	500,000
Less: Cost of Goods Sold	250,000
Gross Profit	250,000
Selling and general expenses	120,000
Net Operating profit	130,000
Interest expenses	20,000
Net Profit before ta	110,000
Income tax	30,000
Net profit for the year	80,000

Balance Sheet
Cash and short-term investments	10,000
Receivables	46,000
Inventories	60,000
Property, plant & Equipment	300,000
Total Assets	416,000
Total current liabilities	25,000
Total Non-current liabilities	11,000
Shareholders Equity $10 par	220,000
Retained Earnings	160,000
Total Liabilities and Equity	416,000

Required:

Using the information above, compute the Companys ratio below and comment on each:

1. Current ratio
2. Asset Turnover

1. EPS
2. Interest cover
3. Gearing ratio