The following are the financial statements of E Ltd for the years ended 31 March 20x2 and 20x3. Balance sheets as at 31 December 20x3 $'000 280 20x2 $'000 $'000 $'000 315 Non current assets, at net book value Current assets Stock Debtors Bank 290 140 240 120 0 360 485 360 Total assets 6754 Equity Share capital Reserves 100 100 85 1854 415 Long term liabilities 8% Debentures (issued in 20x0) 240 240 Current liabilities Creditors Bank overdraft Ello 100 150 250 250 675 Total equity and liabilities Income statements for the years ended 31 March 20x3 $'000 $'000 $'000 1,700 20x2 $'000 1,500 Sales Opening stock Purchases 240 1,150 1,390 290 200 1,090 1,290 240 1,100 600 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 340 260 30 230 1,050 450 270 180 20 160 REQUIRED: Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) t (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Acid test ratio; Current ratio; Creditors' repayment period (in days); Debtors' collection period (in days); Gearing ratio; Gross profit to sales percentage; Net profit (before interest and taxation) to sales percentage; and Return on capital employed i ett 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