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XF Ltd. Is an expanding private company in the electric trade. Accounts preparing in January 2019 included the following information:

Profit Statement for the year ended 31^st December

	2018 Kshs.000	2019 Kshs.000
Sales Less cost of goods sold Gross profit Less: Trading expenses Trading profit Less: Debenture interest Net profit before taxation Less: corporation Tax Net profit after taxation Less: Ordinary share dividend Undistributed profit for year	2,000 1,000 900 450 450 25 425 160 265 125 140	3,200 1,800 1,400 550 850 25 825 320 505 175 330

Balance Sheet as at 31^st December (Kshs.000s)

	2018 Kshs.	2019 Kshs.			2018 Kshs.		2019 Kshs.
Sources of Capital Ordinary share Capital authorised & issued (Kshs.1 share) Undistributed profit 10% Debentures	500 350 250 ____ 1100	500 680 110 ____ 1290	Use of capital Fixed Assets at cost Less: Depreciation Current Assets: Stock Debtors Cash Less:Current Liabilities Creditors Taxation Proposed dividend Bank Overdraft	400 250 80 145 160 125	1000 200 800 730 (430) 1100	550 350 - 200 320 175 65	1400 250 1150 900 (760) 1290

You are required to:

Using appropriate accounting ratios evaluate the profitability, solvency, efficiency and liquidity performance of XF Ltd. (20 marks)

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