Mwaikusa Ltd a trading company commenced business in central Kigali in 2016, preparing its financial statements to 31 October. The directors of Mwaikusa Ltd are trying to assess the financial performance and financial position of the company for the year ending 31 October 2017. The
Following information has been extracted from the financial statements of the company:
|Interest on loans||47,250|
|Property, plant & equipment||712,000|
|Cash and bank||110,000|
All expenses were paid during the year except for interest of loans.
Prepare a report to the management of Mwaikusa Ltd commenting on the profitability (gross profit margin and Net profit margin), liquidity (Current and Quick Ratio), debt management (debt to equity and interest cover ratios), and activity (Inventory, receivable and payables days), of the company.