The following are the financial statements of E Ltd for the years ended 31 March 20x2 and 20x3. Balance sheets as at 31 December 20x2 20x3 $'000 $'000 280 $'000 $'000 315 Non current assets, at net book value Current assets Stock Debtors Bank 290 140 240 120 0 55 485 360 Total assets 765 Equity 100 Share capital Reserves 315 415 Long term liabilities 8% Debentures (issued in 20x0) 240 Current liabilities Creditors Bank overdraft 100 150 250 Total equity and liabilities Income statements for the years ended 31 March $'000 20x3 $'000 1,700 $'000 20x2 $'000 1,500 Sales Opening stock Purchases 240 1,150 1,390 290 200 1,090 1,290 240 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 1,100 600 340 260 1,050 450 270 180 20 160 30 230 REQUIRED: (a) Cala Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) Acid test ratio; Current ratio; (iii) 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