CHAPTER 7 ANALYSING AND INTERPRETING FINANCIAL STATEMENTS (1) 75 Threads Limited manufactures nuts and bolts, w financial statements for 2009 and 2010 are as follows: Statement of financial position as at 30 September 2009 2010 £000 £000 ASSETS Non-current assets. Property, plant and equipment 41.900 Current assets Inventories Trade receivables Gash at bank Total assets EQUITY AND LIABILITIES Equity £1 ordinary shares Reserves Current liabilities Total equity and liabilities Required: Using six ratios, comment on the profitability (three ratios) and efficiency (three ratios) of th business as revealed by the statements shown above, are sold to industrial users, The abbreviate Income statements for the year ended 30 June 2009 2010 £000 £000 Revenue 4,180 1,200 Cost of sales (630) _(750) Gross profit 500” 450 Operating expenses (200) (208) Depreciation 66) _05) Operating profit 236467 interest ee) Profit before taxation 24 768 Taxation 0) _ (48) Profit fr the year 154 ait