The following balances were extracted from the books of Chanda at 31/12/19 K Buildings at cost 240,000 Plant at cost 160,000 Accumulated Depreciation a 01/01/19 -On buildings 40,000 On Plant 76,000 Purchases 500,000 Sales 808,800 Inventory at 01/01/19 100,000 Discounts allowed 36,000 Discounts Received 9,600 Returns inwards 4,400 Returns outwards 30,000 Wages and salaries 117,600 Bad debts written off Other expenses 45,600 76,000 Trade Receivables Trade Payables 10% Loan Additional information 1. Closing inventories K84,000 2. Wages and salaries accrued amount to K1,600 3. Other expenses prepaid amount to K600 4. The provision for bad and doubtful debts is to be adjusted to 2 percent of trade receivables. 5. The loan was taken on July 1 2019 6. Depreciation for the year is to be calculated as follows: - Buildings, 1.5% per annum straight line 9,200 72,000 20,000 3,200 Plant,25% per annum reducing balance Required: (a) Extract a trial balance and find capital (b) Prepare a statement of Profit or Loss (c) Prepare a statement of Financial Position. (d) Calculate and interprete the following ratios 1. Gross Profit Margin (GPM) 2. Net Profit Margin (NPM) 3. Return on Capital Employed (ROCE) 4. Current ratio 5. Acid test ratio 6. Receivables days Cash Drawings 48,000 7. Payables days 8. Inventory days Provision for doubtful debts 1,000 9. Asset turnover Opening capital ? 10. Gearing Ratio