Statement of financial position as at 31^st December 2020

2019 2018

Shs 000 Shs 000

Assets employed

Machinery 10,000 9,000

Motor Vehicle 7,700 4,200

Inventories 9,900 7,200

Accounts Receivable 6,300 4,500

Cash/bank balance 0 1,440

Total Assets 33,900 26,340

Equity and liabilities

Payables 3,600 2,610

Taxation 5,760 2,880

Bank overdraft 1,170 0

Proposed Dividend 3,150 2,250

Ordinary share capital

Authorized, issued and fully paid

Shs 12.5 per share 9,000 9,000

Undistributed profits 8,040 5,100

15% debentures (secured) 3,180 4,500

33,900 26,340

N/B Assume of the sales are on credit

Required:

a) Compute the following ratios using the given information:

i. Four liquidity ratios

ii. Three leverage ratios