Morning star plc. is a manufacturer of computer accessories. The following are selected item appearing in the income statement and balance sheet for the year ended December 31st, 2015. Income Statement Net Sales Less: Cost of Goods Sold Gross Profit Selling and general expenses Net Operating profit Interest expenses Net Profit before ta Income tax 35% Net profit for the year 1,620,000 1,110,000 510,000 360,000 150,000 24,000 126,000 44,100 81,900 Balance Sheet Cash and short term investments Receivables Inventories Property, plant & Equipment Total Assets Total current liabilities Total Non-current liabilities Shareholder's Equity Retained Earnings Total Liabilities and Equity 45,000 135,000 96,000 348,000 624,000 126,000 156,000 237,000 105,000 624,000 Required: Using the information above, compute the Company's ratio below and comment on each: a. Acid-test ratio C. Asset Turnover e. Gearing ratio g. Return on capital employed i. Net profit margin b. Current ratio d. Interest Cover f. Debt ratio h. Gross profit margin Operating profit Margin j