The summarized financial statements of Mac angel Ent. are as follows:

Income statement for the year ended 30 June

2014 2015

USD000 USD000

Sales 20,000 28,000

Cost of sales (15,000) (21,000)

Gross profit 5,000 7,000

Administrative expenses (3,800) (4,600)

Loan interest (400)

Net Profit 1,200 2,000

Balance sheet as at 30 June

2014 2015

USD.000 USD 000

Assets:

Non-current assets (net book value) 11,000 14,000

Current assets:

Inventories 2,000 3,000

Trade and other receivables 2,500 2,800

Balance at bank --- 500

4,500 6,300

Total assets 15,500 20,300

Equity and Liabilities

Issued and fully paid

1,000,000 ordinary shares of sh. 10 10,000 10,000

Revenue reserves 3,000 4,100

13,000 14,100

Non-current liabilities:

8 % debentures - 5,000

Current liabilities

Trade and other payables 1,500 1,200

Bank overdraft 1,000 -

Total equity and liabilities 2,500 1,200

Stock as at 1 July was USD. 5,000,000

Required:

a) For each year, calculate the following:

1. Gross profit margin
2. Inventory turnover
3. Return on asset
4. Current ratio

b) Comment on the financial position of the company