The balance sheets and the profit and loss accounts of Maharaja Synthetics Limited for the last two years are given as follows: 

Statement Profit and Loss Account for the Year Ended 31st March

On the basis of the information above compute and interpret:

1. Profitability Ratios

2. Dividend Pay Out Ratio

3. Current Ratio and Liquid Ratio

4. Receivable Turnover Ratio and Days’ Sales Outstanding 

5. Inventory Turnover Ratio and Average Holding Period

6. Debt Equity Ratio, Total Debt to Equity Ratio, Interest Coverage Ratio

7. Return on Capital Employed

8. Return on Equity

9. Break up of ROE as per Dupont Analysis

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Particulars Net sales Other income Total income Cost of goods sold Other operating expenses Depreciation Interest Profit before tax Taxes Profit after tax Dividend Retained earnings (in Thousands) 2017 788,110 15,370 803,480 520,460 131,970 22,260 32,860 95,930 28,780 67,150 16,788 50,362 2016 672,040 18,020 690,060 473,290 118,190 20,140 24,380 54,060 16,218 37,842 9,460 28,382