a. Assuming that there are 360 days in a year, calculate the following ratios. i. Return on capital employed ii. Gross profit margin iii. Inventory turnover period iv. Current ratio v. Gearing ratio vi. Earnings per share [12 marks] b. Using the information from (a), make a brief assessment of the position and performance of the business over the two years. [7 marks; Word Limit: 200 words] C. Explain the difference between profit maximization & maximization of shareholder's wealth. Discuss the extent to which the concept of maximization of shareholder's wealth is relevant to the formulation of the firm's objective. [6 marks; Word Limit: 200 words] [Total 25 marks] 1. The following are the financial statements of Desk Top Ltd for the last two years: Income Statement for the years ending 31 December 2019 2020 ($000) ($000) Turnover 537 675 Cost of Sales 321 453 Gross Profit 216 222 Operating Expenses 172 158 Operating Profit 44 64 Interest Payable 5 6 Profit before tax 39 58 Tax 12 19 Net Profit 27 39 Balance Sheet for the years ending 31 December 2019 ($000) 90 2020 ($000) 105 Non-Current Assets Current Assets Inventories Trade Receivables Cash 74 88 12 174 264 92 106 3 201 306 Total Assets 52 52 Equity Ordinary shares of $0.50 each Retained Profit 77 129 98 150 44 47 Non-Current Liabilities Bank Loan Current Liabilities Trade payables Taxation 79 12 91 264 96 13 109 306 Total equity and liabilities