QUESTION 2 You are a consultant for GloryLal, a quoted company operating in the manufacturing chet Following area Statement of Profit or Low and Statement of Financial Position with comparatives for the year ended 31" December 2016 Statement of Profiter Less for the year ended 31 December, 2018 2018 2017 GHS GHS Sales reven 3,095 576 1909,051 Cost of sales 2,402.009 1441.990 Groesprofil 692967 467,101 Interest receivable Administration expenses 30366 Opin 360245 347,011 1.115 Profit foretation 225,102 Income tax expense Profit for the year 267930 193.830 2 Statement of Financial Position as at 31 December 2015 2018 Gius Noa-current Property, plant and equipment 802.180 Current 2017 GHIS 66.00 905.679 807,712 Trade receivables Prepayment and accrued income Cash at bank and in hand 1.068.450 1008,354 1,870.630 1664425 25.178 651.321 909.899 410.591 Equity and liabilities Equity Ordinary shares Income surplus Nos current liabilities 10% look Current liabilities Trade payables Accruals and defined income Corporate taxes Other 100.000 100.000 545340 627.018 81.279 10.000 32,652 Total equity and liabilities 1.870.6301664425 Required: a Calculate the following rates i Profitability ratios - Return on Capital Employed. Retum on Equity. Gross profit margin and Net profit margin i Long term solvency and stability - DebeAsset ratio. Geuring ratio and Interest cover ini. Short-term solvency and liquidity - Current ratio and Acid test ratio ix. Efficiency (turnover ratios) - Account receivable collection period. Account payable payment period. Inventory tumover times) Prepare a report addressed to the Chief Executive Officering the relative performance and financial position of Glory Lid for the year ended 31 December 2018 (14 mars (Total 20 marks QUESTION 3