Write a short report on the financial performance and position of Reliable Engineering Pty Ltd

a). Required: Give the formula for each of the following ratios, then calculate each ratio for both years using supplied end of year figures:

i. Current ratio

ii. Acid test ratio

iii. Days inventory

iv. Days debtors

v. Debt to equity

vi. Net profit margin (EBIT)

vii. Return on assets

viii. Return on equity

b). Required: Based on your analysis, write a short (approximately 400 words) report on the financial performance and position of Reliable Engineering Pty Ltd.