Smith Ltd Balance Sheets as at 31 December 2006 '000 '000 '000 2007 '000 '000 '000 Fixed assets (WDV) 183 280 Current assets: Stock Trade Debtors Bank 65 158 54 74 176 50 277 300 Current liabilities: Trade creditors Tax Dividends 60 26 20 92 46 25 106 163 171 354 137 417 Financed by: Ordinary Share Capital Reserves Undistributed profit 250 104 250 167 354 417 Required: 1) calculate the following ratios: a) Return on capital employed b) Gross profit as percentage of sales c) Net profit as percentage of sales d) Total expenses as percentage of sales e) Stock turnover ratio f) Debtor payment period g) Creditor payment period h) Current ratio i) Acid test ratio 2) Comment on the profitability and liquidity of the business in each of the years making references to the relevant ratios. Smith Ltd Balance Sheets as at 31 December 2006 '000 '000 '000 2007 '000 '000 '000 Fixed assets (WDV) 183 280 Current assets: Stock Trade Debtors Bank 65 158 54 74 176 50 277 300 Current liabilities: Trade creditors Tax Dividends 60 26 20 92 46 25 106 163 171 354 137 417 Financed by: Ordinary Share Capital Reserves Undistributed profit 250 104 250 167 354 417 Required: 1) calculate the following ratios: a) Return on capital employed b) Gross profit as percentage of sales c) Net profit as percentage of sales d) Total expenses as percentage of sales e) Stock turnover ratio f) Debtor payment period g) Creditor payment period h) Current ratio i) Acid test ratio 2) Comment on the profitability and liquidity of the business in each of the years making references to the relevant ratios