PARKASH is running a business that manufactures nuts and bolts which are then sold to local industrial units. The abridged accounts for 2014 and 2015 are given below: Income Statement for the year ending 30 September 2014 and 2015 ITEMS SALES COGS:- DIRECT MATERIAL COST=780 DIRECT WAGES =510 FACTORY OVERHEADS = 110 GROSS PROFIT INDIRECT EXPENSES ADMN COST DISTRIBUTION COST NET PROFIT INVENTORY AT THE END OF 2013= $180000 ITEM FIXED ASSETS FREEHOLD PREMISES PLANT & MAXHINERY FIXTURES & FITTINGS CURRENT ASSETS INVENTORY TRADE RECEIEVABLES BANK BALANE CASH IN HAND TOTAL ASSETS LIABILITIES TRADE PAYABLE BANK OVERDRAFT EQUITY: CAPITAL = NET PROFIT LESS DRAWINGS TOTAL LIABILITIES Required: 2014 IN (000) 1920 1400 520 120 80 =200 320 2015 IN (1000) 2180 920 390 220 = 1530 650 145 115=260 390 Balance SheetAs at 30 September 2014 and 2015 2014 2015 400 400 200 395 120=720 100=895 200 250 130 166 30 -- 10=370 4=420 1090 1315 150 160 -- 35 900 940 320 390 (280) (210) 1090 1315 (a) Use the following ratios to compare the financial performance from 2014 and 2015 of Parkash (i) Gross profit ratio (ii) Net profit ratio (iii) Return on capital employed(iv) Fixed asset turnover or non current asset turnover (v) Inventory turnover (times) or inventory turnover ratio (vi) Average collection period or trade receivable collection period (vii) Current ratio (viii) Liquid ratio Give your answer to a maximum of two decimal places. (b) Also write a short report to Parkash giving your observations on the results for the year and the comparison with the previous year