Urban Plc is a trading company which makes all its sales and purchases on credit terms. The companys financial statements for the year ended 31 December are as follows: Urban Plc Statement of Comprehensive Income for the year to 31 December

Sales revenue Cost of sales Gross profit Operating expenses Profit before interest and tax Interest payable Profit before taxation Taxation Profit after tax Urban Plc 2014 $000 14,000 6,800 7,200 4,400 2,800 160 2,640 520 2,120 2013 $000 11,000 5,000 6,000 3,600 2,400 220 2,180 430 1,750 Statement of Financial Position as at 31 December Assets Non-current assets Property, plant and equipment Current assets Inventories (2012: $1,300,000) Trade receivables Cash at bank and in hand Equity Ordinary shares of $1 each Retained Earnings Liabilities Non-current assets Long Term loans 2014 $000 $000 3,420 1,500 1,700 1,150 4,350 7,770 3,000 1,850 3,850 2300 2013 $000 $000 3,800 1,350 1,500 800 3,650 7,450 3,000 1,200 4,200 1,500 Current liabilities Trade payables Taxation 1,090 1,350 530 1,620 400 1,750 7,770 7,220 Additional Information 1. Dividends on ordinary shares of $660,000 were paid during the year to 31 December 2014. The equivalent figure for 2013 was $600,000. 2. The market price of Urban Plc's shares was 340p per share and 280p per share on 31 December 2014 and 31 December 2013 respectively. Required: (a) Write a brief report on the company stating its Performance, Position and Potential. You may wish to use some or all of the ratios noted below to support your assertions. i. Return on capital employed ii. Gross profit margin iii. Net profit margin iv. Current ratio v. Inventory holding period vi. Earnings per share vii. Price earnings ratio