REQUIRED The following information is available from the financial statements of Halon Plc. (a) Using the above information calculate the following ratios Summarised Income statement for the year ended 31 December 2019 Rs 000 Revenue 9,400 Cost of sales 4230 Gross profit 5,170 Expenses (3.290) Profit from operations 1.880 Debenture interest (100) Profit for the year 1,780 O Gross profit margin (1) Net profit margin (iii) Current ratio (iv) Debtors days'rade receivable turnover. (0) Goaring ratio (vi) Dividend cover [12 Marks) Summarised statement of financial position as at 31 December 2019 The following information ratios are also available about Ilalco plc previous year's performance: Rs 000 Rs. 000 Non-current assets - Property Plant and Equipment 4,200 Gross profit margin Net profit margin Gearing ratio Dividend cover. 60% 16% 10% 1.5 times Current assets Invertory Trade receivebles Cash and cash oquivalento Total assets 1.760 960 20 REQUIRED 2.740 6,940 Equity and liabilities Equity 2,000 000 Ordinary shares of Rs 1 cach Rclained ca minge (b) Using the ratios calculated in part (a) and the ratios provided in the above table comment on the performance of Halco plc [ 113 marks] (c) State three importance of calculating ratios. 13 Marks) (d) Statc twa limitations of ratios analysis. 12 Marks] 2 000 2 200 5,300 Non current liabilities Debentures 1.000 Current liabilities Trade payables Total equity and liabilities 640 6,940 Other information about Halco pic is as follows: 1. All ral RAKA - 2. The dividers pac in the year amoured to Rs 100.000