You have been supplied data for the Supreme Plastic Company Ltd, and its industry averages:

1. Determine the indicated ratios for the Supreme Plastic Company.

2. Indicate the company’s strengths and weaknesses as shown by your analysis.

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Equity and Liabilities Equity share capital 10% Debentures Sundry creditors Bills payable Other current liabilities 2,30,000 Cash 1,65,000 Sundry debtors 2,20,000 Stock 1,10,000 19,25,000 Statement of profit for the year ending March 31, current year Sales Less: Cost of goods sold: Materials Wages Factory overheads Balance sheet as at March 31 Amount Assets *12,00,000 Net fixed assets Gross profit Less: Selling and distribution expenses Less: Administrative and general expenses Earnings before interest and taxes Less: Interest Earnings before taxes Less: Income taxes (0.35) Net profit 10,45,000 6,60,000 3,24,500 Amount 6,05,000 2,20,000 2,75,000 8,25,000 19,25,000 *27,50,000 20,29,500 7,20,500 2,75,000 3,07,000 1,38,500 23,000 1,15,500 40,425 75,075