QUESTION 21 Nonat Co is a manufacturer of domestic appliances. Its chairman is pleased with the results for the year ended 31 December 2015 as they show a continuing improvement over recent past performances. However, the finance director. says that a better assessment of the company's performance would be made by a comparison to other companies in the same sector The finance director has obtained some ratios for Nonat Co's business sector, based on a year end of 31 December 2015, which are Page 2 of 5 Return on capital employed (ROCE) Net asset (total assets less current liabilities) turnover Gross profit margin Operating profit margin: Current ratio 18-5% 1-8 times 21% 10.3% 161 Gearing (debt/equity) 36% The summarised financial statements of Nonat Co are Statement of profit or loss and other comprehensive income for the year ended 31 December 2015 Revenue Cost of sales Gross profit Operating costs Finance costs Profit before tas Income tax expense GH'000 62.500 (5),800) 10,700 (5.800) (1,800) 0,100 (1,000) 2,100 Profit for the yea Statement of financial position as at 31 December 2015 GHC000 GHC000 Aneb Non-current assets Property Owned plant Leased plaed 100 12,600 12,200 12,900 Current assets 16,400 Total 19,300 Equity and liabilities Equity Equity sharm of G 9,000 Property revamples 4,000 M600 21,600