The following figures are for AB Engineering Supplies Ltd at 31 December 2012:

(a) Calculate: (i) gross profit as a percentage of the sales; (ii) rate of inventory turnover; (iii) net profit as a percentage of sales; (iv) net profit as a percentage of total capital employed (non-current assets plus current assets); (v) current ratio; (vi) quick asset (acid test) ratio.

(b) The following figures are for another firm in the same line of business, CD Engineering Services Ltd, for the year ending 31 December 2012.

Compare your results in

(a) with those given for CD Engineering Services Ltd. As a result of your comparison, say which you think was the more successful business during 2009, giving your reasons.

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Turnover Gross profit Average inventory at cost price Expenses Non-current assets Current assets Inventory Accounts receivable Bank Current liabilities Capital 000 10 8 IN 2 000 160 40 10 8 108 20 128 (10) 118 118