Question 3: Calculate the liquidity ratio and working capital ratios for the following accounts of a manufacturer of products for the construction industry, and comment on the ratios. (10 marks) 2016 2015 RM'000 RM'0001 Turnover 2,065.0 1,788.7 Cost of sales 1.478.6 1,304.0 Gross profit 586.4 484.7 Current assets Stocks Debtors (note 1) Short-term investments Cash at bank and in hand Creditors: amount falling due within one year Loans and overdrafts Corporation taxes Dividend Creditors (note 2) 119.0 400.9 4.2 48.2 572.3 109.0 347.4 18.8 48.0 523.2 49.1 62.0 19.2 370.7) 501.0 35.3 46.7 14.3 324.0 420.3 Net current assets 71.3 102.9 Notes 1. Trade debtors 2. Trade creditors 329.8 236.21 285.4 210.81