ANSWER SHEET 412 (2 marka 12 mars Earnings per share (2 marks) urn on esity [2 marks 4.17 Debtors collection period 1 (2 marks) [2 marks) 4 L4 Inventory turnover 4.2 Return on asset 1 (2 marks) Creditors payment period: 4.2 2 (2 marks) 12 marks) 4.2 Acid test ratio: 415 Debt to assets (2 marks) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 R QUESTION 4 120 Marks) REQUIRED Use the information provided below to calculate the lolowing ratios for the financial year ended 31 December 2019. (Where applicable, express answers to two decimal places.) 411 Gross margin ASSETS Non-current assets Inventaries Accounts receivable Cash 3 840 000 342 000 1.440 000 624 000 5 246 000 [2 marks) 4.12 Current ratio (2 marks) 4.13 Return on equity (2 marks) EQUITY AND LIABILITIES Ordinary share capital Retained earnings Long-term loan Accounts payable 600 000 516 000 4254 000 876 000 6 245 000 4.1.4 Inventory turnover [2 marks) 4.1.5 Debt to assets (2 marks) 4 1.6 Eamings per share (2 marks) 4.1.7 Debtors collection penod (2 marks) Additional information 1. Inventories on 31 December 2018 amounted to R27600D. 2. All purchases and sales of inventory are on credit 3. 250 000 ordinary shares have been issued by the company 4 The credit terms offered by suppliers are 60 days. 42 Comment on the following ratios that have been calculated for Mersat Limited. Provide two significant comments for each Ratio 2019 2018 4.2.1 Return on assets 23.15% 20.25% (2 marks) 422 Creditors payment penod 68.32 days 59.56 days (2 marks 4 2.3 Acid test ratio 2.36.1 0.87:1 12 marks) INFORMATION Excerpts of the financial data of Mersat Limited for 2019 are as follows: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales Cost of sales Operating profit Interest expense Profit before tak Profit after tax R 6 600 000 4 614 000 1446 000 240 000 1 206000 868 320