Profit and Loss Account for XYZ Ltd for the year ended 30 June 2012 800 US $ million Sales revenue COGS 250 Gross profit 550 Expenses 300 Net profit before interest and tax 250 Interest 20 Net profit before tax 230 Tax 40 Net profit after interest and tax 190 Dividends 50 Retained profit 140 Balance Sheet for XYZ Ltd as at 30 June 2012 $m $m 1 Fixed Assets Fixed assets Depreciation Net fixed assets 600 30 570 Current Assets Cash Stock Debtors Total current assets 20 55 15 90 Current liabilities Overdraft Creditors Short-term loans Total current liabilities 10 20 15 45 Net current assets (working capital) 45 Long-term liabilities 250 Net assets 365 Financed by: Share capital Retained profit Total equity 225 140 365 Referring to the P&L Statement and Balance Sheet above, calculate and interpret: a) two profitability ratios b) ROCE c) two liquidity ratios Prepare another balance sheet for 2013 with the following adjustments: 1. Cash increased by $10 million. 2. Creditors rose by $15 million. 3. Stock decreased by $5 million. 4. A long-term loan increased by 10%. 5. Debtors rose by $5 million. 6. Retained profit fell by $26 million. 7. The bank overdraft reduced by $4 million. 8. Net fixed assets, share capital and short-term loans remained the same. I Assume that in 2013, gross profit changed to 900, net profit before interest and tax changed to 640 and net profit after interest and tax changed to 360. Calculate the same ratios as above for 2013. Analyze and interpret the results