The following are the financial statements of High Street Enterprises plc for last year and this year: Income statement for the year ended 31 December Turnover Cost of sales Gross profit Operating expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year Last year This year 000 000 15,600 24,160 (8,740) (12,564) 6,860 11,596 (5,296) (8,572) 1,564 3,024 (132) 1,564 2,892 (316) (518) 1,248 2,374 Statement of financial position as at 31 December ASSETS Non-current assets Current assets Inventories Trade receivables Cash Last year This year 000 000 8,072 10,456 1,850 3,166 976 1,992 624 52 3,450 5,210 11,522 15,666 Total assets EQUITY AND LIABILITIES Equity Ordinary shares of 0.50 each 6,500 6,500 Capital reserves 500 500 Retained earnings 1,744 3,518 8,744 10,518 Non-current liabilities Loan notes Current liabilities Trade payables Other payables Taxation Bank overdraft Total equity and liabilities 1/2 600 1,320 2,236 1,142 1,434 316 518 360 2,778 4,548 11,522 15,666 Note: High Street Enterprises plc hopes to retain the bank overdraft on a semi-permanent basis. Calculate the following financial ratios for High Street Enterprise for last year and this year (use year-end figures where statement of financial position items are involved). 1. Return on capital employed 2. Gross profit margin 3. Operating profit margin 4. Current ratio 5. Acid test ratio 6. Inventory turnover period 7. Settlement period for trade receivables 8. Settlement period for trade payables 9. Gearing ratio 10. Interest cover ratio 11. Earnings per share ratio Use these ratios to comment on the performance and position of the business from the point of view of: a) an owner of 15% equity; and b) the business's bank.