You have been provided with the following summarized accounts of Golden Times Ltd. For the year ended 31 March 20XX:

Balance sheet as at 31 March 20XX

Fixed assets:	Sh.	Sh.	Sh.
Freehold property (Net book value) Plant and machinery (Net book value) Motor vehicles (Net book value) Furniture and fittings (Net book value) Current Assets: Stocks Debtors Investments Current liabilities: Trade creditors Bank overdraft Corporation tax Dividends payable Financed by: Authorised share capital 800,000 Sh.1 ordinary shares Issued and fully paid: 400,000 Sh.1 Ordinary shares Capital reserve Revenue reserve Loan capital: 400,000 10% Sh.1 Debentures	238,400 878,400 176,000 107,200	1,000,000 400,000 120,000 1,500,000 (1,400,000)	480,000 800,000 200,000 200,000 1,680,000 120,000 1,800,000 400,000 200,000 800,000 400,000 1,800,000

Profit and loss account for the year ended 31 March 20XX

	Sh.
Sales (credit) Profit after charging all expenses except interest on debentures Less: debenture interest Profit before tax Corporation tax Less: ordinary dividend proposed Retained profit transferred to revenue reserve	4,000,000 440,000 40,000 400,000 176,000 224,000 107,200 116,800

The following additional information was available:

1.The purchases for the year were Sh.2,160,000 while the cost of sales was Sh.3,000,000.

2.The market price for Golden Times Ltd. Ordinary shares as at 31 March 20XX was Sh.5

3.The company estimates the current value of its freehold property at Sh.1,100,000.

Required:

(a)Compute the following ratios for Golden Times Ltd.:

Return on capital employees

The profit margin

The turnover of capital

Current ratio;

Liquid ratio;

Number of days accounts receivable are outstanding;

Property ratio;

Stock turnover ratio;

Dividend yield ratio;

Price earnings ratio.

(b)Comment on Golden Times Ltd. Liquidity stating the reference points to which relevant ratios can be compared.