Zen is a public listed manufacturing company. Its summarised financial statements for the year ended 30 September 2020 (and 2019 comparatives) are: Income statements for the year ended 30 September: 2020 $000 2019 $000 Revenue 29,500 36,000 Cost of sales (25,500) (26,000) Gross profit 4,000 10,000 Distribution costs (1,050) (800) Administrative expenses (4,900) (3,900) Investment income 50 200 Finance costs (600) (500) Profit (loss) before taxation (2,500) 5,000 Income tax (expense) relief 400 (1,500) Profit (loss) for the year (2,100) 3,500 Statements of financial position as at 30 September: 2020 2019 $000 $000 $000 $000 Assets Non-current assets Property, plant and equipment 17,600 24,500 Investments at fair value through profit or loss 2,400 20,000 4,000 28,500 Current assets Inventory and work-in-progress 2,200 1,900 Trade receivables 2,200 2,800 Tax asset 600 nil Bank 1,200 6,200 100 4,800 Total assets 26,200 33,300 Equity and liabilities Equity Equity shares of $1 each 13,000 12,000 Share premium 1,000 nil Revaluation reserve nil 4,500 Retained earnings 3,600 17,600 6,500 23,000 Non-current liabilities Bank loan 4,000 5,000 Deferred tax 1,200 5,200 700 5,700 Current liabilities Trade payables 3,400 2,800 Current tax payable nil 3,400 1,800 4,600 Total equity and liabilities 26,200 33,300 The following information has been obtained from the Chairmans Statement and the notes to the financial statements: Market conditions during the year ended 30 September 2020 proved very challenging due largely to difficulties in the global economy as a result of a sharp recession which has led to steep falls in share prices and property values. Zen has not been immune from these effects and our properties have suffered impairment losses of $6 million in the year. The excess of these losses over previous surpluses has led to a charge to cost of sales of $15 million in addition to the normal depreciation charge. Our portfolio of investments at fair value through profit or loss has been marked to market (fair valued) resulting in a loss of $16 million (included in administrative expenses). There were no additions to or disposals of non-current assets during the year. In response to the downturn the company has unfortunately had to make a number of employees redundant incurring severance costs of $13 million (included in cost of sales) and undertaken cost savings in advertising and other administrative expenses. The difficulty in the credit markets has meant that the finance cost of our variable rate bank loan has increased from 45% to 8%. In order to help cash flows, the company made a rights issue during the year and reduced the dividend per share by 50%. Despite the above events and associated costs, the Board believes the companys underlying performance has been quite resilient in these difficult times. Required: (a) Prepare for Zen the following mentioned ratios for both years. Gross profit margin Operating profit margin Return on year-end capital employed (ROCE) Net asset (total assets less current liabilities) turnover Current ratio Average inventory turnover Trade payables payment period Debt to equity b. Analyse and discuss the financial performance and position of Zen as portrayed by the above financial statements and the additional information provided. c. State what additional information you think is needed for a better analysis of Zens position.