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 20x2 $'000 $.000 $'000 $ 000 280 315 Non current assets, at net book value Current assets Stock Debtors Bank 290 240 120 360 360 Total assets 675 Equin 100 Share capital Reserves Long term liabilities 8. Debentures (issued in 20x0) 240 Current liabilities Creditors Bank overdraft 100 150 SU Total equin and liabilities Income statements for the years ended 31 March $'000 20x3 $'000 1,700 Sales Opening stock Purchases 240 1,150 1,390 2012 $'000 $'000 1,500 200 1090 1 290 240 1,050 290 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 450 270 180 20 160 REQUIRED: (a) Calculate to one decimal place the following ratios for E Limited for both years 20x2 and 20x3. Show workings. (64 marks) Acid test ratio: (ii) Current ratio, (1) Creditors' repayment period (in days), (iv) Debtors' collection period (in days): Gearing ratio; (vi) Cross profit to sales percentage; (vii) Net profit (before interest and taxation) to sales percentages 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) (0) (ii) (iii) Liquidity Long term solvency/risk Profitability