QUESTION 5 [25 MARKS] The following information relates to the financial statements of Amica Ltd:

The following ratios of Amica Ltd were calculated for year ended 31 December 2019:

REQUIRED

(a) Calculate comparable ratios for Amica Ltd for the year ended 31 December 2020 showing your workings clearly.

(b) Analyse the performance of Amica Ltd by comparing the results (part (a)) against the ratios of previous year.

Statements of Profit or Loss for the year ended 31 December: 2020 2019 $ 000 $ 000 Revenue 16,800 14,625 Cost of sales 12,690 10,237 Gross profit 4,110 4,388 Less expenses: Depreciation 540 420 Finance costs 142 103 Administrative expenses 2,250 1,950 Distribution costs 480 1.434 Net profit before tax 698 481 Statements of Financial Position as at 31 December 2020 2019 Non current assets $ 000 $ 000 Property, Plant and Equipment 2,775 2,145 Current assets Inventory 960 735 Trade receivables 1,845 1,620 Cash 120 180 2.925 2,535 Total assets 5,700 4,680 Equity and liabilities Equity Share capital 1,200 1,200 Retained earnings 1.965 1,395 3,165 2,595 Non-current liabilities 10% Loan notes 1,200 900 Current liabilities Bank overdraft 165 120 Trade payables 1,125 1,035 Tax 45 30 1,335 1,185 Total equity and liabilities 5.700 4,680 Return on capital employed Net profit (before interest and tax) margin Gross profit margin Net asset turnover Current ratio Quick ratio Trade receivables days Trade payables days Inventory turnover Gearing 17% 4% 30% 4.18 times 2.14 times 1.52 times 40 days 37 days 13.9 times 26%