Pluto is a company involved in diverse business activities, including consulting and the sale of technological devices. The financial statements for the year ended 31 December 2015 are presented below. Using ratio analysis determine the financial position of the business. Statement of Financial Position Year ended 31 Dec 2015 Year ended 31 Dec 2014 ASSETS Non-Current Assets Property, Plant and Equipment Investments at Cost Intangible Assets 2,035,806 12,973 2,012,091 1,517,308 7,691 1,504,830 10,742 4,787 Current Assets Bank Inventory 147,807 90,573 131,317 78,879 16,490 11,694 Total Assets 2,183,613 1,607,881 EQUITY AND LIABILITIES Equity Share Capital 550,000 Share Premium 35,544 550,000 35,544 Retained earnings 78,146 285 Non-Current Liabilities Non-current loan 120,000 25,901 Debentures 146,060 111,800 Deferred tax 61,874 40,134 Current Liabilities Accounts Payables 8,398 10,829 Customer deposits 1,176,146 828,692 Provisions for employee service benefits 7,445 4,696 Total Equity and Liabilities 2,183,613 1,607,881 Statement of Changes in Equity Issued Share Share Capital Premium '000 '000 Statutory Retained Reserve Earnings '000 1000 Total 1000 As at January 2014 550,000 35,544 21,001 (149,907) 456,638 Total comprehensive income for the year 191,325 191,325 Dividends paid Transfer to statutory reserve (22,000) (22,000) 19,133 (19,133) As at December 2014 550,000 35,544 40,134 285 625,963 As at 1 January 2015 the year 550,000 35,544 40.134 285 625.963 Total comprehensive income for 217,401 217,401 Dividends paid Transfer to Statutory Reserve (117,800) (117,800) 21,740 21,740 As at 31 December 2015 550,000 35,544 61,874 78,146 725,564 Statement of Comprehensive Income Revenue Revenue from sales Cost of Sales Gross Profit Year ended 31 Dec 2015 Year ended 31 Dec 2014 2,410,750 1,689,020 1,687,525 1,182,314 723,225 506,706 General administration expenses (195,398) (156,019) Impairment charge (305,823) (155,449) Amortisation and depreciation (4,603) (3,913) Profit before finance charges 217,401 191,325 Interest expenses (47,948) (29,687) Net Profit before tax 169,453 161,638 Tax expenses Net Profit after tax 50,836 48.491 118,617 113,147 Other comprehensive income 98,784 78,178 Total comprehensive income 217,401 191,325 Required For both year ended 31 December 2014 and 31 December 2015, critically analyse and interpret the results using ratio analysis, in terms of: 1. Profitability ratios i. Gross profit percentage / margin (2) ii. Net profit percentage/margin (2)) iii. Return on assets (2) 2. Liquidity ratios i. Current ratio (2) ii. Acid test ratio 3. Leverage ratios i. Debt ratio ii. Equity ratio (3) (2) (2)