The summarized financial statements of Baraka Enterprises Ltd. are as follows: Income statements for the year ended 30 September: 2013 Sh.'000' 2014 Sh.'000' Sales Cost of sales Gross profit Administrative expenses Debenture interest Net profit 20,000 (15,000) 5,000 (3,800) - 1,200 28,000 (21,000) 7,000 (4,600) (400) 2,000 Balance Sheet as at 30 September: 2013 Sh.'000' 2014 Sh.'000' Assets: Non-current assets (net book value) Current assets: Inventories Trade and other receivables Balance at bank Total assets 11,000 2,000 2,500 - 4,500 15,500 14,000 3,000 2,800 500 6,300 20,300 Equity and liabilities: Capital and reserves: Issued and fully paid 1,000,000 ordinary shares of Sh.10 each revenue reserves Non-current liabilities: 8% debentures Current liabilities: Trade and other payables Bank overdraft Total equity and liabilities Stock as at 1 October 2012 was Sh.5,000,000 10,000 3,000 13,000 - 1,500 1,000 2,500 15,500 10,000 4,100 14,100 5,000 1,200 - 1,200 20,300 Required: For each year, calculate the following: (i) Gross profit margin(2 marks) (ii) Inventory turnover(2 marks) (iii) Return on equity(2 marks) (iv) Return on assets(2 marks) (v) Acid test ratio(2 marks) (vi) Current ratio(2 marks) (c)Comment on the liquidity position of the company giving a possible reason for the change.(3 marks