Financial Statements of the Accounting Training Centre are set out below: Statement of Financial…

Financial Statements of the Accounting Training Centre are set out below:

Statement of Financial Position at 31 December

		2011	2012
Fixed assets		Kshs	Kshs
Freehold premises		5,000	100,000
Equipment and furnishings at cost		84,000	126,000
Less: accumulated depreciation		22,000	42,000
Current assets		127,000	184,000
Stock		66,000	72,000
Debtors		42,000	48,000
Bank		14,000	11,000
Creditors amounts falling due within 1 year		122,000	131,000
Creditors		45,000	56,000
Taxation payable		22,000	28,000
Dividends payable		15,000	20,000
Interest payable		82,000	104,000
Net current assets		40,000	27,000
		167,000	211,000
Creditors amounts falling due after 1 year		–	20,000
10% debentures		167,000	191,000
Ordinary share capital (of Kshs.1 each)		100,000		100,000
Revaluation reserve		41,000		41,000
Profit and loss account		26,000		50,000
		167,000		191,000
Statement of Comprehensive Income for year ending 31 December.
2011				2012
Kshs.				Kshs.
Sales on credit 1,000,000				1,800,000
Cost of sales 478,000				1000,000
Gross profit 522,000				800,000
Distribution costs 128,000				200,000
Depreciation 120,000				155,000
Operating profit 274,000				445,000
Debenture interest 20,000				60,000
Profit on ordinary activities before tax 254,000				385,000
Tax on ordinary activities 80,000				100,000
Profit for the financial year 174,000				285,000
Ordinary Dividends 60,000				100,000
Retained profit for the year 114,000				185,000

Note: opening stocks for the year 2011 amounted to Kshs.50,000

Required: compute the following accounting ratios:

Gross Profit Margin and Mark-up, Net profit margin, return on capital employed, current ratio, quick ratio, debtor days, stock turnover or days, dividend per share and times interest earned ratio (20 marks)