The following figures were taken from the final accounts of Drew plc for the year ended 31 March 2019 and 2020 respectively

	2019	2020
	000	000
Sales	850,000	790,000
Cost of sales	(620,250)	(710,550)
Gross profit	220,750	79,450
Operating Expenses	(120,260)	(130,810)
Operating profit	100,490	(51,360)
Interest Expenses	(10,200)	(10,000)
Net Profit	90,290	(61,360)
Non-current assets	400,000	427,000
Current assets	325,000	261,640
Current liabilities	(260,000)	(200,000)
Total assets minus current liabilities	465,000	488,640
Ordinary share capital	100,000	100,000
Retained profits (reserves)	250,000	188,640
	261,000	288,640
Bonds repayable by 2030	204,000	200,000
Capital employed	465,000	488,640

a) Calculate the following for the year ended 31 March 2019 and 2020 for Bonding Limited:

1. Interest gearing
2. Interest cover
3. Capital gearing

b) Assuming that the applicable average market ratios are as follows:

Interest cover: 4 times

Interest gearing: 25%

Capital gearing: 50%

Proprietary ratio: 75%

Analyse the state of financial risk in Drew plc in 2019 and 2020.