You are given below, in draft form, the financial statements of Algernon Ltd for 20X2 and 20X3. They are not in publishable format.

Required
a. Calculate for Algernon Ltd, for 20X2 and 20X3, the following ratios:
i. return on capital employed;
ii..Return on owners' equity (return on shareholders' funds);
iii. Trade receivables' turnover;
iv. Trade payables' turnover;
v. Current ratio;
vi. Quick assets (acid test) ratio;
vii. Gross profit percentage;
viii. Net profit percentage;
ix. Dividend cover;
x. Gearing ratio.
b. Using the summarized financial statements given, and the ratios you have just prepared, comment on the position, progress and direction of Algernon Ltd.

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Statemants of financial position 20X2 Cost Depn Net 20X3 ASSETS Cost Depn Net Plant Building Finoncidl assets Lond Inventory Trade receivables Bank Total assets 10,000 4,000 6,000 00 5,00 6,000 50,000 10,000 40,000 90,00011,000 79,000 60,000 14,000 46,000 101,000 16,000 85,000 80,000 53,000 65,000 50,000 50,000 43,000 55,000 40,000 3,000 237,000 343,000 EQUITY AND LIABILITIES Equity stares £1 eoch Shore premium Revaluofon reserve Retoined earnings 10% debentures Trade payables Bonk 50,000 14,000 20,000 45,000 150,000 50,000 4,000 343,000 40,000 12,000 5,000 00,000 40,000 237,000 Statements of profit and loss 20X2 20X3 200,000 (100,000 (120,000) 80,000 (60,000) (60,000) 20,000 Sales revenue 200,000 Cost of sales Gross proft Expenses Profit for the year 100,000 40,000