QUESTION FOUR a) X Ltd is a wholesaler trading in computer products. The followed information is available from the company and from t the industry it operates in. Return on capital employed before tax Return on owners equity before tax Gross profit margin Net profit margin Leverage Current ratio Quick ratio Accounts receivables collection period Accounts payables payment period Inventory turnover 2017 19% 24% 23% 14% 45% 1.6 0.8 32 days 63 days 68 days 2016 19% 21% 25% 12% 51% 1.8 0.8 26 days 42 days 72 days Industry average 2017 19% 16% 20% 9% 65% 1.4 0.8 29 days 42 days 72 days Required: Comment on the significance of these ratios high-lighting their implications for management strategy in 2017 and for future years. (15 marks) b) Explain the key issues an analyst considers when analysing liabilities. (10 marks)