The summarised accounts of Hope (Eternal Springs) Ltd for the years 2022 and 2023 are given below.

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The summarised accounts of Hope (Eternal Springs) Ltd for the years 2022 and 2023 are given below.

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(a) Calculate the following ratios for 2022 and 2023:
(i) Gross profit: Sales (ii) Inventory turnover (iii) Net profit: Sales (iv) Quick ('acid test')
(v) Working capital (vi) Net profit: Capital employed

(b) State the possible reasons for and significance of any changes in the ratios shown by your calculations.

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