You are provided with the following financial statements forABC ltd

Profit and Loss A/C for the year ended 31.12.2019

Sales

Less: Cost of Sales Opening stock

Purchases

Less: Closing stocks

Gross profit

Less expenses Selling and distribution

Depreciation

Administration expenses

Earnings before interest & taxes

Interest

Earnings before tax

Tax @ 50%

Less ordinary dividend

(0.75 per share)

Retained profit for the year

Sh

99,500

559,500

659,000

(149,000)

30,000

10,000

135,000

Sh

850,000

(510,000)

340,000

(175,000)

165,000

(15,000)

150,000

75,000

75,000

(15,000)

60,000

ABC

Balance Sheet as at 31 December 2019

Non Current Assets

Land and Buildings

Plant & Machinery

Current Assets

Inventory

Debtors

Less provision

Cash

75,000

(4,000)

Sh.

250,000

80,000

330,000

149,000

71,000

30,000

580,000

Issued share capital

(20000 share of Sh, 10)

Reserve

Retained profit

Long term

Current liabilities.

Sh.

200000

90000

60000

100000

130000

580,000

Required [Handwrite, scan and upload your answer]

Compute one ratio relating to each of the following and interpret its meaning based on your understanding of accounting:

a) Profitability

b) Liquidity

c) Efficiency

d) Capital structure

e) Stock market