The following are the financial statements of Richardo Ltd. for the year ended 31 March 1995:

Balance Sheet as at 31 March 1995
	Shs.		Shs.
Cash Debtors Stock Equipment	480,000 640,000 2,080,000 1,600,000	Trade creditors Notes Payable (9%) Long term debt (10%) Shareholders Equity	860,000 840,000 1,600,000 1,500,000
	4,800,000		4,800,000

Income Statement for the year ended 31 March 1995
	Shs.	Shs.
Sales Less: cost of sales Gross profit Deduct: Selling expenses Administrative and general expenses Profit before taxation Taxation Net profit	600,000 1,120,000 235,600	6,000,000 3,600,000 2,400,000 1,955,600 444,400 177,760 266,640

All sales are net and on credit.

The following industry ratios are also provided to you.

Industry averages
Current ratio Acid test ratio Stock turnover ratio Total assets turnover ratio Times interest earned ratio Net profit margin Return on investment Total asset to shareholders equity Return on shareholders equity	times 1.1 times 2.4 times 1.4 times 3.5 times 4.0 percent 5.6 percent 3.0 times 16.8 percent

Required

(a) Calculate the ratios shown above for Richardo Ltd. and present them in columnar form along the industry averages. (14 marks)

(b) Comment upon the following about Richardo Ltd. in relation to the industry averages:

(i) Liquidity position (3 marks)

(ii) Financial risk (3 marks)

(iii) Overall performance (3 marks)

(Total: 23 marks)