Question 4 You are presented with the following summarised accounts for F. Raser, a limited liability company. F. Raser Income statement for the vear ended 31 May 2020 Revenue Cost of sales Gross profit Distribution & administrative expenses Profit from operations Finance cost Profit before tax Tax expense Net profit for the period $000 160 -100 60 -35 25 -5 20 -10 20 150 Statement of Financial Position as at 31 May 2020. Assets Non-current assets Current assets Inventory Trade receivables Cash and bank 45 25 5 225 Equity and liabilities Capital and reserves $1 Ordinary shares Reserves 100 30 130 50 Non-current liabilities 10% loan notes Current liabilities Trade payables Taxation Dividends (for the year) 30 10 5 225 The ratio values for F. Raser for 2018 and 2019 as well as the current average ratio values for the industry sector in which F. Raser operates are as follows: Return on capital employed (%) Gross profit percentage (%) Net profit percentage (%) Quick/Acid test ratio Receivables collection period (days) Earnings per share (cents) Ratio Historical Data 2018 2019 16.2 14.7 30.4 34.7 19.3 17.7 1.5 1.1 32 44 18 13 Industry Average 2020 16.2 32.3 17.3 1.5 35 15 Required: (a) Calculate the following ratios for F. Raser for the year ended 31 May 2020. 1) Return on capital employed ii) Gross profit percentage iii) Net profit percentage iv) Quick/Acid test ratio v) Receivables collection period vi) Earnings per share (6 marks) Using the additional information given and the ratios you calculated in part (a), write a report on the financial performance of F. Raser. Indicate in your report what additional information might be useful to help interpret the ratios. (19 marks) (Total: 25 marks)