Tailoka's summarized financial statements for the year ended 31 March 2019 are sol out below K million 4,000 (3,450) 550 (370) 40 180 Statement of Profit Or Loss Revenue (25% cash sales) Cost of sales Gross profit Operating experises Profit on disposal of plant Finance charges Profit before tax Income tax expense Profit for the period Dividend paid Retained profit for the year (20) 200 (50) 150 50 100 K'million K million 550 Statement of Financial Position Non-current assets Property, plant and equipment Current assets Inventory Trade receivables Bank Total assets 250 360 610 1.160 Equity and liabilities Equity shares of K25 each Retained earnings 100 380 480 200 Non-current liabilities 8% loan notes Current liabilities Bank overdraft Trade payables Current tax payable Total equity and liabilities 10 430 40 480 1.160 The current share price is K30 Required: (a) Calculate the following ratios: (1) Return On Capital Employed (ROCE) (2) Gross profit ratio (3) Asset Turnover (4) Receivables Days (5) Inventory Days (6) Payables Days (7) Current Ratio (8) Quick Ratio (9) Capital Gearing Ratio (10) Interest Cover (11) Earnings per Share (EPS) (12) Dividend per share (13) Dividend Cover (14) Price Earnings (P/E) Ratio (21 Marks) (b) Describe any four (4) limitations of ratio analysis. (4 Marks) [Total:25 marks] DOMITI