The following information was extracted from the books of ABC ltd for the years ended December 2014 and 2013: Trading, Profit and Loss Account (Income statement ) 2014 Ksh. 2013

The following information was extracted from the books of ABC ltd for the years ended December 2014 and 2013: Trading, Profit and Loss Account (Income statement ) 2014 Ksh. 2013 Ksh. Sales Cost of sales Gross profit Operating expenses Profit before taxation Current year’s taxation Profit after taxation Dividends Retained profit for the year 31,000,000 18,000,000 13,000,000 9,500,000 3,500,000 1,600,000 1,900,000 600,000 1,300,000 25,500,000 16,000,000 9,500,000 7,500,000 2,000,000 900,000 1,100,000 600,000 500,000 Balance Sheets (Statements of financial Position) | Kshs. 2014 Kshs.’ 2013 Fixed assets (net book value) Freehold land and factory building Plant and equipment Motor vehicles Current assets: Stock Debtors Cash and bank balance Current liabilities: Creditors Taxation Dividends Net current assets Net assets Financed by: Share capital Retained profits Long term loan 10,000,000 27,000,000 7,500,000 44,500,000 21,500,000 17,000,000 1,000,000 39,500,000 15,500,000 1,600,000 600,000 17,700,000 21,800,000 66,300,000 50,000,000 12,800,000 3,500,000 66,300,000 10,000,000 20,000,000 5,000,000 35,000,000 21,000,000 16,000,000 3,000,000 40,000,000 13,500,000 900,000 600,000 15,000,000 25,000,000 60,000,000 45,000,000 11,500,000 3,500,000 60,000,000 Additional information. 1.     Assume all the sales are on credit. 2.     Assume a year has got 365 days. 3.     Profit before interest and tax was 4,000,000 for 2014 and 3,500,000 for 2013. Required: For each of the two years 2014 and 2013, calculate the following ratios. i.          Gross profit as percentage of sales. ii.          Net profit as percentage of sales. iii.          Expenses as percentage of sales. iv.          Current ratio. v.          Acid test ratio (Quick ratio) Kindly note thta part i,ii,iii have been solved. with solving iv and v

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