Calculate the following six ratios (current, quick, receivable, gross, net profit, return capital)

(a) Calculate the following six ratios for both companies, clearly showing the ratio formula and figures used: - (i) Current ratio (ii) Quick ratio (acid test ratio) (iii) Receivables collection period (iv) Return on capital employed (v) Gross profit percentage (vi) Net profit percentage (15% Weighting) (b) Using the ratios calculated in part (a) prepare a report for the investor providing comments on the performance and position of Wallace and Gromit. (30% Weighting) (c) Suggest what further information might be useful to the potential investor before they decide in which company to invest. (20% Weighting) (d) It has been rumoured that Gromit is planning an expansion of their production facilities which will cost £2.5million. Discuss how this might be financed and any problems associated with the methods you have chosen. (25% Weighting) Note: Presentation and citations/referencing – see template grading sheet