XF Ltd. Is an expanding private company in the electric trade. Accounts preparing in January 2019 included the following information: Profit Statement for the year ended 31st December 2018 2019 Kshs.000 Kshs.000 Sales 2,000 3,200 Less cost of goods sold 1,000 1,800 Gross profit 900 1,400 450 550 Less: Trading expenses Trading profit 450 850 Less: Debenture interest 25 25 Net profit before taxation 425 S25 160 320 Less: corporation Tax 265 505 125 175 Net profit after taxation Less: Ordinary share dividend Undistributed profit for year 140 330 Balance Sheet as at 31st December (Kshs.000s) 2018 2019 2018 2019 Kshs. Kshs. Kshs. Kshs. Sources of Capital Use of capital Fixed Assets at cost 1000 1400 Less: Depreciation 200 Ordinary share Capital authorised& issued (Kshs.1 share) 250 500 500 Current Assets: SOO 1150 Stock 400 550 350 680 Debtors 250 350 Undistributed profit 250 110 Cash SO 730 900 10% Debentures Less:Current Liabilities Creditors 10% Debentures Less:Current Liabilities Creditors Taxation 145 200 Proposed dividend 160 320 Bank Overdraft 125 175 165 (430) (760) 1100 1290 1100 1290 You are required to: Using appropriate accounting ratios evaluate the profitability, solvency efficiency and liquidity performance of XF Ltd. (20 marks)