the following is XYZ statement of financial performance and the statement of financial position

XYZ SOLE TRADER

INCOME STATEMENT

FOR THE YEAR ENDING 31 DECEMBER 20*3

	KSH	KSH	KSH
sales			30 000 000
less return inwards			(2 000 000)
			28 000 000
less : COST OF SALES
Opening stock		2 000 000
add purchases	20 000 000
less return outwards	(1 000 000)	19 000 000
GOODS AVAILABLE FOR SALE		21 000 000
less closing stock		(3 000 000)
			(18 000 000)
GROSS PROFIT			10 000 000
add discount received			1 000 000
			11 000 000
EXPENSES
Motor vehicle expenses	700 000
add unpaid m/vehicle expenses	300 000
		1 000 000
telephone bills	300 000
less 1/4 telephone bills for 2012 (wk 1)	(75 000)
		225 000
electricity	1 500 000
add unpaid electricity & water	(100 000)
		1 600 000
depreciation
motor vehicle (wk2)	1 120 000
furniture and fixtiures (wk 3)	320 000
		1 440 000
salaries and wages	800 000
less paid salaries	(200 000)
		600 000
rent	500 000
less paid rent	(100 000)
		400 000
accured interest on loan		150 000
discount allowed		800 000
bad debts		1 000 000
general expenses		500 000	(7 715 000)
NET PROFIT			3 285 000

XYZ SOLE TRADER

BALANCE SHEET

AS AT 31 st DECEMBER 20*3

	Sh	sh	sh
NON CURRENT ASSETS	COST	ACC. DEP	N.B.V
motor vehicle	5 600 000	(2 720 000)	2 880 000
furniture and fixtures	3 200 000	(520 000)	2 680 000
buildings	3 300 000		3 300 000
	12 100 000	(3 240 000)	8 860 000
CURRENT ASSETS
stock(closing stock)		3 000 000
debtors		8 000 000
bank		1 400 000
prepayments:rent	100 000
salary	200 000
bills telephone	75 000	375 000
		12 775 000
CURRENT LIABILITIES
creditors		4 000 000
accruals: motor vehicles expenses		300 000
:electricity		100 000
:interest on loan		150 000	(4 550 000)
WORKING CAPITAL			8 225 000
			17 085 000
FINANCED BY
capital			14 300 000
add net profit			3 285 000
less drawings			(2 000 000)
ADD: 10% long term loan			1 500 000
			17 085 000

required; compute all the relevant ratios under the following areas

1. liquidity ratios

2, solvency ratios

3. gearing ratios

4. activity ratios

5. stock market ratios