The following is the summarized financial information of NumberHolding Limited for the year ended 31 December, 2017 (withcomparative figures):

Statement of profit or loss for the year ended 31December

	2017							2016
	$							$
Sales revenue	29,026							29,887
Cost of goods sold	(22,176)							(25,116)
Gross margin	6,850							4,771
Operating expenses	(1,176)							(1,395)
Operating profits	5,674							3,376
Finance cost	(830)							(1,278)
Profits before tax	4,844							2,098
Profits tax	(748)							(494)
Profits after tax	4,096							1,604
Statement of financial position as at 31December
	2017							2016
Non-current assets	$							$
Property, plant and equipment	48,628							43,360
Investment properties	6,516							7,560
Intangible assets	1,251							755
Current assets		56,395							51,675
Inventory	3,758							6,196
Trade receivables	3,502							3,080
Others receivables	1,905							2,535
Cash	2,912							4,031
Total assets		12,077							15,842
	68,472							67,517
Current liabilities
Trade payables	3,511							7,731
Other payables	2,493							3,710
Tax payables	194							288
Short-term bank loans	3,003							5,102
		9,201							16,831
Non-current liabilities
Borrowings	31,879							27,397
Owners’ equity
Ordinary shares	10,200							9,202
Other reserves	1,621							1,613
Retained profits	15,571							12,474
	27,392							23,289
Total liabilities and equity	68,472							67,517

Other information:

1 Balances as of 31 December 2015:

	$
Accounts receivables	6,000
Inventory	4,800
Total assets	42,930
Owners’ equity	20,350

Assume all sales and purchases are on credit terms.

Industry norms:

Current ratio	1.5
Quick ratio	1
Net profit margin	15%
Return on assets	10%
Return on shareholders’ equity	14%

Required

Calculate the following financial ratios for 2017 and2016 (round up to two decimal places):

1. Current ratio

2. Quick ratio

3. Accounts receivable turnover (use average accountsreceivable)

4. Inventory turnover (use averageinventory)

5. Net profit margin

6. Return on assets (use average totalassets)

7. Return on shareholders’ equity (use averageshareholders’equity)

Based on the information and your calculations in (a)above, comment on the company’s liquidity andprofitability.