account question

Answer 2 qns: Statement of Financial Position as at 31 December (in thousands of Dollars) 2010 2009 ASSETS Non-current assets Property, plant and equipment 1300 1400 Other tangible assets 100 150 -------------------------------------------------------------------------- 1400 1550 Current assets Inventories 550 380 Trade receivables 750 560 Other current assets 85 80 Cash and cash equivalents 165 65 ------------------------------------------------------------------------------ 1550 1085 ------------------------------------------------------------------------------- Total Assets 2950 2635 EQUITIES AND LIABILITIES Ordinary shares of $1 each 500 500 Retained earnings 600 400 Other components of equity 500 500 ------------------------------------------------------------------------- Total Equity 1600 1400 Non-current liabilities Long-term borrowings 600 550 ------------------------------------------------------------------------ Total non-current liabilities 600 550 Current liabilities Trade payables 390 280 Bank overdraft 120 165 Current portion of long-term 150 100 borrowings Current tax payable 40 60 Short-term provisions 50 80 ------------------------------------------------------------------------- Total current liabilities 750 685 Total liabilities 1350 1235 --------------------------------------------------------------------------- Total equity and liabilities 2950 2635 Income Statement year (in thousands of Dollars) 2010 2009 Sales (60% credit and 40% cash) 1800 2000 Cost of Sales (900) (1000) ---------------------------------------------------------------------------- Gross Profit 900 1000 Other income 80 60 Distribution cost (250) (260) administrative expenses (200) (200) other expenses (30) (40) -------------------------------------------------------------------------- Profit from operation 500 560 Finance costs (120) (100) ----------------------------------------------------------------------------- Profit before tax 380 460 Income tax expense (76) (92) --------------------------------------------------------------------------- Profit for the year 304 368 1. Calculate the following ratios for 2009 and 2010 (A) 2010 2009 1. Operating Profit Margin 　 2. Net Profit Margin 　 3. Return on Capital Employed 　 4. Gross profit margin 5. Inventories collection Period 　 6. Receivables collection Period 　 7. Payables Period 　 8. Gearing Ratio 9. Current Ratio 　 10. Quick Ratio 　 　 (B) 2. Briefly advise abc's CEO on his company's financial performance and position using the financial ratios calculated in part (a) above.