You are a consultant for Glory Lad, a quoted company operating in the manufacturing sector. Following area Statement of Profit or Loss and Statement of Financial Position with comparatives for the year ended 31 December 2018 GHS Statement of Profit or Loss for the year ended 31" December, 2018 2018 2017 GHS Sales revenue 3,095,576 1.909.051 Cost of sales 2,402.609 1.441.950 Gross profit 692.967 467,101 Interest receivable Administration expenses 383.466 222.872 Operating profit 360 245 247011 18.115 21.909 Profit before taxation 342.130 225,102 Income tax expense 74.200 31272 Profit for the ycar 267 930 193.830 2 Statement of Financial Position as at 31 December 2018 Assets 2018 2017 GHS GHS Non-current assets Property, plant and equipment 802.180 Current assets Inventory 36.550 Trade receivables 905,679 807,712 Prepayment and accrued income 97,022 45.729 Cash at bank and in hand 1.06.450 1,008,354 Total assets 1,870610 Equity and liabilities Equity Ordinary shares 258,178 25.178 Income surplus 651.721 410.591 909.899 668.760 Non-current liabilities 10% loan stock 100.000 100,000 Current liabilities Trade payables 627,018 545.340 Accruals and deferred income 81.279 280,464 Corporate taxes 10.000 Other taxes 860731 ROS686 Total equity and liabilities 1.870.630 1.664425 Required: a. Calculate the following ratios: i Profitability ratios - Retum on Capital Employed, Return on Equity. Gross profit magie and Net profit margin ii. Long term solvency and stability - Debe Asset ratio, Gearing ratios and Interest cover Short-term solvency and liquidity - Current ratio and Acid test ratio iv. Efficiency (tumover ratios) - Account receivable collection period, Account payable payment period, Inventory tumover (times) b. Prepare a report addressed to the Chief Executive Officer, assessing the relative performance and financial position of Glory Lid for the year ended 31" December, 2015 You are a consultant for Glory Lad, a quoted company operating in the manufacturing sector. Following area Statement of Profit or Loss and Statement of Financial Position with comparatives for the year ended 31 December 2018 GHS Statement of Profit or Loss for the year ended 31" December, 2018 2018 2017 GHS Sales revenue 3,095,576 1.909.051 Cost of sales 2,402.609 1.441.950 Gross profit 692.967 467,101 Interest receivable Administration expenses 383.466 222.872 Operating profit 360 245 247011 18.115 21.909 Profit before taxation 342.130 225,102 Income tax expense 74.200 31272 Profit for the ycar 267 930 193.830 2 Statement of Financial Position as at 31 December 2018 Assets 2018 2017 GHS GHS Non-current assets Property, plant and equipment 802.180 Current assets Inventory 36.550 Trade receivables 905,679 807,712 Prepayment and accrued income 97,022 45.729 Cash at bank and in hand 1.06.450 1,008,354 Total assets 1,870610 Equity and liabilities Equity Ordinary shares 258,178 25.178 Income surplus 651.721 410.591 909.899 668.760 Non-current liabilities 10% loan stock 100.000 100,000 Current liabilities Trade payables 627,018 545.340 Accruals and deferred income 81.279 280,464 Corporate taxes 10.000 Other taxes 860731 ROS686 Total equity and liabilities 1.870.630 1.664425 Required: a. Calculate the following ratios: i Profitability ratios - Retum on Capital Employed, Return on Equity. Gross profit magie and Net profit margin ii. Long term solvency and stability - Debe Asset ratio, Gearing ratios and Interest cover Short-term solvency and liquidity - Current ratio and Acid test ratio iv. Efficiency (tumover ratios) - Account receivable collection period, Account payable payment period, Inventory tumover (times) b. Prepare a report addressed to the Chief Executive Officer, assessing the relative performance and financial position of Glory Lid for the year ended 31" December, 2015