Safari Limited presented the following financial statements for the year ended 31 December 2021.

Income statement for the year ended 31 December 2021

Sh	Sh
Sales	9,040,00
Cost of sales opening stock	2,500,000
Purchases	6,820,000
9,320,000
Closing stock	(2,860,000)	6,460,000
Gross profit	2,580,000
Expenses	(2,640,000)
Net loss	(60,000)

Balance sheet as at 31 December 2021

Non-current assets:	Sh	Sh
Premises
Fixtures and fittings (net book value)	5,600,000
Motor vehicles (net book value)	500,000
	1040000 7,140,000
Current assets:
Stocks	2,860,000
Debtors	3,260,000
6,120,000
Current liabilities
Trade creditors	2,900,000
Bank overdraft	2,800,000
5,700,000
Net current assets	420,000
Net assets	7,560,000
Financed by:
Ordinary share capital	2,000,000
Retained profit	3,160,000
Long-term loans	2,400,000
Capital employed	7,560,000

Compute and interpret the following financial ratios of the company

1. Acid test ratio
2. Return on assets
3. Days to sell inventory
4. Long term to debt equity ratio
5. Return on common equity
6. Earnings per share
7. Gross profit margin
8. Total debt to equity ratio
9. Times interest earned
10. Sales to end of year working capital (20 marks)