You are given summarized results of an electrical engineering business, as follows. All figures are in £000.
Profit and loss account

(a) Prepare a table of the following 12 ratios, calculated for both years, clearly showing the figures used in the calculations: current ratio quick assets ratio stock turnover in days
debtors' turnover in days creditors' turnover in days gross profit %
net profit % (before taxation)
interest cover
dividend cover
ROCE
gearing.
(b) Making full use of the information given in the question, your table of ratios and your com monsense, comment on the apparent position of the business and on the actions of the management.

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year-ended 31.12.20X1 31.12.20XO Tunover Cost of sales Gross profit Operating expenses 50000 34 000 16 000 13 000 3 000 Interest payable Profit before taxation Taxation (Loss) profit after taxation Dividends Transfer (from) to reserves 60 000 42 000 18 000 15 500 2 500 2 200 300 350 (50) 600 (650) 1 700 600 1 100 600 500 Balance sheet Fixed assets intangible tangible 500 12 000 12 500 11 000 11 000 Current assets 14 000 16 000 500 30 500 24 000 6 500 Total assets less current liabilities19 500 6 000 13 000 13 000 stock debtors bank and cash 500 28 500 20000 8 500 19 500 Creditors due within 1 year Net current assets Creditors due after 1 year Capital and reserves 14 000 share capital share premium revaluation reserve profit and loss 1 300 3 300 2 000 6 400 13 000 1 300 3 300 2 000 7 400 14 000