ADDITIONAL INFORMATION

$-$ The profit before the changes in working capital amounted to R$1920000.$

$-$ All purchases and sales of inventories were on credit.

$-$ Equipment was purchased for cash.

$-$ Vehicles with a cost price of R$720000$ and accumulated depreciation of R$120000$ were sold at carrying value.

$-$ Interim dividends paid during the year amounted to R$456000.$ No final dividends were declared.

$-$ The issued share capital for the year ended $31$ December $2023$ consisted of $500000$ ordinary shares. The market price of a share in Grenville Limited was $1500$ cents on $31$ December $2023.$

$-$ The creditors granted Grenville Limited credit terms of $30$ days.

$-$ The following ratios were calculated at the end of $2023$ and $2022$:

QUESTION $2$

REQUIRED

Use the information provided in Question $1$ to answer the following questions.

$2\mathrm{.}1$ Calculate the following ratios for $2023$ only. Note: Use the formulas provided in the formula sheet only $($that appear after QUESTION $5).$ Answers to the ratios must be expressed to two decimal places and be fully stated e$.$g$.23\mathrm{.}45\backslash \%$; $1\mathrm{.}34$:$1$ etc.

$1\mathrm{.}1$ Net profit margin

$1\mathrm{.}2$ Inventory turnover

$1\mathrm{.}3$ Current ratio

$1\mathrm{.}4$ Debt to assets

$.5$ Average collection period

$.6$ Earnings per share

$7$ Dividend yield

Comment on the acid$-$test ratio, gross margin ratio and average payment period ratio that were calculated for $2023$ and $2022.$ ADDITIONAL INFORMATION

$-$ The profit before the changes in working capital amounted to R$1920000.$

$-$ All purchases and sales of inventories were on credit.

$-$ Equipment was purchased for cash.

$-$ Vehicles with a cost price of R$720000$ and accumulated depreciation of R$120000$ were sold at carrying value.

$-$ Interim dividends paid during the year amounted to R$456000.$ No final dividends were declared.

$-$ The issued share capital for the year ended $31$ December $2023$ consisted of $500000$ ordinary shares.

The market price of a share in Grenville Limited was $1500$ cents on $31$ December $2023.$

$-$ The creditors granted Grenville Limited credit terms of $30$ days,

$-$ The following ratios were calculated at the end of $2023$ and $2022$:

QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the information provided in Question $1$ to answer the following questions.

$2\mathrm{.}1$ Calculate the following ratios for $2023$ only. Note: Use the formulas provided in the formula sheet oniy $($that appear after QUESTION $5).$ Answers to the ratios must be expressed to two decimal places and be fully stated e$.$g$.23\mathrm{.}45\backslash \%$; $1\mathrm{.}34$:$1$ etc.

$2\mathrm{.}1\mathrm{.}1$ Net profit margin

$(2$ Marks$)$

$2\mathrm{.}1\mathrm{.}2$ Inventory turnover

$(2$ Marks$)$

$2\mathrm{.}1\mathrm{.}3$ Current ratio

$(2$ Marks$)$

$1\mathrm{.}4$ Debt to assets

$(2$ Marks$)$

$1\mathrm{.}5$ Average collection period

$(2$ Marks$)$

$1\mathrm{.}6$ Earnings per share

$(2$ Marks$)$

$7$ Dividend yield

$(2$ Marks$)$

Comment on the acid$-$test ratio, gross margin ratio and average payment period ratio that were calculated for $2023$ and $2022.$

$(6$ Marks$)$