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	2014 IN (000)	2015 IN (1000)
SALES	1920	2180
COGS:-
DIRECT MATERIAL COST=780		920
DIRECTWAGES =510		390
FACTORY OVERHEADS = 110	1400	220 = 1530
GROSS PROFIT	520	650
INDIRECT EXPENSES
ADMN COST	120	145
DISTRIBUTION COST	80 =200	115=260
NET PROFIT	320	390
INVENTORY AT THE END OF 2013= $180000

Balance SheetAs at 30 September 2014 and 2015

ITEM	2014	2015
FIXED ASSETS
FREEHOLD PREMISES	400	400
PLANT & MAXHINERY	200	395
FIXTURES & FITTINGS	120=720	100=895
CURRENT ASSETS
INVENTORY	200	250
TRADE RECEIEVABLES	130	166
BANK BALANE	30	--
CASH IN HAND	10=370	4=420
TOTAL ASSETS	1090	1315
LIABILITIES
TRADE PAYABLE	150	160
BANK OVERDRAFT	--	35
EQUITY:
CAPITAL =	900	940
NET PROFIT	320	390
LESS DRAWINGS	(280)	(210)
TOTAL LIABILITIES	1090	1315

Required:

(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