The following information relates to Style Limited for the two years to 30 June 2011 and 2012 respectively:

Required:
(a) Calculate the following accounting ratios for the two years 2011 and 2012 respectively:
1. Gross profit
2. Mark-up
3. Net profit
4. Return on capital employed
5. Stock turnover
6. Current ratio
7. Acid test
8. Trade debtor collection period
9. Trade creditor payment period.
(b) Comment on the company€™s performance for the year to 30 June2012.

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Trading and profit and loss a ccounts for the years 2011 2012 5000 £000 1500 5000 £000 1900 Sales (all credit) Less: Cost of goods sold: Opening stock Purchases (all on credit terms) 995 80 100 1400 1500 200 1075 100 Less: Closing stock Gross profit Less: Expenses Net profit 975 525 420 105 1300 600 495 105 Balance sheet at 30 June 2011 2012 £000 £000 685 5000 5000 420 Fixed assets (net book value) Current assets Stock Trade debtors Bank 100 375 25 200 800 1000 Less: Current liabilities Bank overdraft Trade creditors 10 200 210 80 80 420 790 1105 1210 Capital and reserves Ordinary share capital Profit and loss account 900 205 1 105 900 310 1210 Shareholders' funds