The following information is extracted from the audited books of accounts of a chain of
food stores for the period ended 31st December 2015.
Revenue Statement (Trading and Profit and Loss Account for the year ended 31st
December 2015.
BWP’000 BWP’000
Sales 460
Cost of good sold (220)
Gross profit 240
Wages 50
Other expenses 30 (80)
Net Profit 160
Note: The purchase figure included in the cost of goods sold of P255 000.
Balance Sheet as at 31st December 2015
BWP’000 BWP’000
Fixed Assets 400
Current assets:
Stock 80
Debtors (trade) 120
Bank 400
----- [600]
Current liabilities:
Trade creditors 300
------ [300]
300
Net Assets 700
====
Financed by:
Share capital 600
Revenue reserves 100
------
700
Shareholders Funds 700
=====
Required:
(a) Calculate the following accounting ratios:
(i) Current ratio
(ii) Acid test ratio
(iii) Stock turnover (in days)
(iv) Debtors turnover (in days)
(v) Creditors turnover (in days)
(vi) Return on capital employed (ROCE)
(vii) Gross profit percentage

(viii) Net profit percentage
(b). Give a brief comment on the performance of the company, based on the above ratios.