The following information is extracted from the end of year financial statements of two companies working in the same industry.

Please answer the following questions to TWO decimal places.

	Caron Ltd.	Trip Ltd.
	$	$
Sales	80,000	98,000
Costs of goods sold	(19,000)	(24,000)
Expenses	(45,000)	(19,000)
Operating profit	16,000	55,000
Current assets	5,800	6,200
Current liabilities	4,200	6,800
Non-current liabilities	12,000	48,000
Share capital and reserves	44,000	26,000

a. Calculate the gross profit percentage for both companies.

b. Calculate the return on capital employed for both companies.

c. Calculate the current ratio for both companies.

d. Calculate the capital gearing percentage for both comapnies

e. Using the return on capital employed ratio you have calculated in (b), compare and comment on results from the perspective view of a potential investor.

d. Using your calculations in (c), compare and comment on the current ratio of the two companies.