Msafiri Co. has provided the following recent financial statements.

Statements of financial position

Assets liabilities and owners equity

Year 2020 2021 2020 2021

Current assets sh. 000 sh. 000 Current liabilities sh. 000 sh. 000

Cash 18,270 22,150 Accounts payable 16,215 17,318

Debtors 12,315 13,865 Notes payable 8,000 10,000

Inventory 21,584 24,876 Other 11,145 14,451

Total 52,169 60,891 Total 35,360 41,769

Fixed assets 168,326 184,735 Long-term debt 80,000 85,000

Owners equity

Ordinary share capital 20,000 20,000

Retained earnings 85,135 98,857

Total 105,135 118,857

Total assets 220,495 245,626 Total liabilities &

Owners equity 220,495 245,626

Income statement for the year 2021

sh. 000

Sales 285,760

Cost of goods sold 205,132

Selling and administrative costs 21,950

Earnings before interest and taxes 58,678

Interest expense 9,878

Taxable income 48,800.

Taxes (30%) 14,640

Net income 34,160

Dividends 6,832,000

Addition to retained earnings 27,328,000

Additional information:

-the par value of the shares is sh. 10/share.

-the market price is sh. 20/share.

Evaluate the performance of Msafiri Company using the following ratios:

a) Activity ratios

b) Leverage ratios

c) Profitability ratios

d) Price Earnings ratio

e) Dividend yield