Q.1 The following figures are relating to the accounts of Alpha Ltd.

	2010	2011
Sales (credit)	1 200 000	1 500 000
Net Block	500 000	800 000
Receivables	200 000	295 000
Payable	100 000	200 000
Cash at Bank	50 000	20 000
Closing stock	200 000	400 000
Bank overdraft	100 000	250 000
Purchases	900 000	1 200 000
Expenses	100 000	150 000
Depreciation	75 000	120 000
Interest on overdraft	15 000	40 000
Loan	-	200 000
Interest on loan	-	35 000
Share capital	400 000	400 000
Reserve and Surplus	190 000	207 500
Provision for income tax	120 000	197 500
Proposed dividends	40 000	60 000
Opening stock	180 000	-

REQUIRED:

a) Rearrange the figures in Income Statement and Balance Sheet in a form suitable for analysis.

b) Comment upon the present state and trend in respect of profitability, liquidity activity of the company. Consider two significant ratios under each heading.