From the ratios and other data set forth below for the Auto Accessories Ltd, indicate your interpretation of the company’s financial condition:

Particulars Current ratio (per cent) Acid-test ratio Working capital turnover (times) Receivable turnover (times) Collection period (days) Inventory to working capital (per cent) Inventory turnover (times) Income per equity share (2) Net income to net worth (per cent) Operating expenses to net sales (per cent) Sales increase during the year (per cent) Cost of goods sold to net sales (per cent) Dividend per share (3) Fixed assets to net worth (per cent) Net profit on net sales (per cent) Year 3 302 99 3.25 7.2 50 110 5.41 2.5 7 25 23 73 3 22.7 2.0 Year 2 278 110 3.00 8.41 43 100 6.01 4.05 8.5 23 16 71 3 18.0 5.09 Year 1 265 155 2.75 9.83 37 95 6.11 5.10 11.07 22 10 70 3 16.4 7.03