Thomas Sdn Bhd is a computer manufacturer. The summarised accounts of Thomas Sdn Bhd for the years 2019 and 2020 are given below.

Thomas Sdn Bhd

Income Statement for the Year Ended 31 December

	2019	2020
	RM000	RM000
Sales	200	280
Cost of goods sold	(150)	(210)
Gross profit	50	70
Administrative and selling expenses	(38)	(46)
Interest expenses	-0-	(4)
Net income	12	20

Thomas Sdn Bhd

Statement of Financial Position as at 31 December

	2019	2020
	RM000	RM000
Fixed assets at cost less depreciation	110	140
Inventories	20	30
Accounts receivable	25	28
Bank	-0-	5
Total assets	155	203
Share capital - ordinary	100	100
Retained earnings	30	41
8% Debentures	-0-	50
Accounts payable	15	12
Bank (overdraft)	10	-0-
Total shareholders equity and liabilities	155	203

Inventories at 1 January 2019 was RM 50,000.

Required;

a) Calculate the following ratios for 2019 and 2020:

(i) Current ratio

(ii) Acid-test ratio

(iii) Inventories turnover

(iv) Accounts turnover

(v) Gross profit on sales

(vi) Net profit on sales

(12 marks)

b) Explain the possible reasons for and significance of any changes in the ratios shown by your calculations.

(8 marks)