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 $'000 20x2 $.000 315 Non current assets, at net book value Current assets Stock Debtors Bank 290 140 55 485 360 Total assets 675 Equity Share capital Reserves 100 100 415 Long term liabilities 8% Debentures issued in 20x0) 240 240 Current liabilities Creditors Bank overdraft 100 150 110 250 110 765 Total equity and liabilities Income statements for the years ended 31 March 20x2 $'000 $'000 1,500 Sales Opening stock Purchases 20x3 $'000 $'000 1,700 240 1,150 1,390 290 1.100 600 200 1,090 1,290 240 1,050 450 Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation 270 340 260 _30 180 20 160 230 REQUIRED: (a) Calculate to one decimal place the following ratios for E Limited for both vears 20x2 and 20x3. Show workings. (64 marks) (i) Acid test ratio; (ii) 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