The following are the financial statements of E Ltd for the years ended 31 March 20x2 and 20x3. Balance sheets as at 31 December $'000 20x3 $'000 280 20x2 $'000 $'000 315 Non current assets, at net book value Current assets Stock Debtors Bank 290 140 55 Total assets Equity Share capital Reserves Long term liabilities 8% Debentures (issued in 20x0) Current liabilities Creditors Bank overdraft 110 Total equity and liabilities Income statements for the years ended 31 March S'000 20x3 $'000 1.700 Sales Opening stock Purchases 240 1.150 1,390 290 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 20x2 $'000 $'000 1,500 200 1,090 1,290 240 1,050 450 270 180 20 160 1,100 600 340 260 230 REQUIRED: Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) (i) Acid test ratio; (ii) Current ratio; Creditors' repayment period in days); (iv) Debtors' collection period (in days); (v) Gearing ratio; (vi) Gross profit to sales percentage; (vii) Net profit (before interest and taxation) to sales percentage; and (viii) Return on capital employed (b) Comment on the performance of E Limited over the two year period using the ratios calculated in (a) in terms of: (36 marks) (i) (ii) (iii) Liquidity Long term solvency/risk Profitability