Quickserve plc is a food wholesale company. Its financial statements for the years ended 31 December 20X8 and 20X9 are as follows:

Statements of financial position

Required:

(a) Describe the concerns of the following users and how reading an annual report might help satisfy these concerns:

(i) Employees

(ii) Bankers

(iii) Shareholders.

(b) Calculate relevant ratios for Quickserve and suggest how each of the above user groups might react tothese.

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Statements of income 20X9 20X8 £000 £000 15,000 3,900 Sales revenue 12,000 3,000 Gross profit Distribution costs Administrative expenses Operating profit 500 600 1,500 1,000 2,300 1,000 Interest receivable 80 100 Interest payable (400) (350) 2,050 Profit before taxation 680 Income taxation 240 720 Profit after taxation 440 1,330 Dividends 800 600 (Loss)/profit retained (360) 730