The income statement and the statement of financial position for the year ended 31 March 2020 and 2021 for Ashuka Limited < < Income Statement for the year ended 31 March 2020 and 2021 2020 2021 < 000 000 < Revenue 1,200 1,800 < Cost of sales (480) (936) Gross profit 720 864 < Lease costs (250) (250) < Overhead costs (310) (332) < Depreciation (20) (70) Profit before interest and tax 140 212 < Interest charges (8) (20) Profit before tax 132 192 Taxation (33) (48) Profit for the year 99 144 L Statement of Financial position as at 31 March 2020 and 2021 2020 2021 < < Non-current assets (see note 1) < Fixtures and fittings 300,000 512,000 < Computers 50,000 45,000 350,000 557,000 < Current assets Inventories 118,356 284,647 < Trade receivables 9,863 73,973 Cash at bank 26,781 1,181 < 155,000 359,801 < Total assets 505,000 916,801 < Equity Called-up ordinary share capital Retained profit 100,000 250,000 < 240,000 384,000 340,000 634,000 < Non-current liabilities Bank borrowings 100,000 150,000 < Current liabilities (see note 2) < Trade payables and accruals 65,000 132,801 < 65,000 132,801 < Total equity and liabilities 505,000 916,801 Additional information: < < Note 1 < Non-current assets are analysed as below: < Fixed assets at cost Accumulated depreciation Net 2020 2021 < 380,000 657,000 (30,000) (100,000) < 350,000 557,000 < No assets were sold during the year end 31st March 2021 < < Note 2 < Note that trade payables and accruals shown in the statement of financial position are analysed as below: < Trade payables Accruals Tax due 2020 2021 < < 47,500 106,000 < 1,000 2,801 16,500 24,000 < 65,000 132,801 < (a) Calculate the following ratios for 2020 and 2021 from the income statements and statements of financial position provided above (ratio formulas included at the end of the booklet). < < Gross profit margin Return on capital employed < Current ratio Quick ratio < Gearing ratio Interest cover ratio < Average inventories turnover period < Average settlement period for receivables < (8 marks) < < < (b) Using the information provided in the financial statements and the ratios that you have calculated, write a management report to the board of directors commenting on the company's operations for the financial year end 31st March 2021 compared to the previous year. < (17 marks)