GUESTION $5$

$($pe Malla$)$

$\backslash$table$[[,$R$],[$Capital: $1$ July $2023,800000],[$Drawings$,65000],[$Property$,$ plant and equipment,$2360700],[$Bank $($untavourable$),40000],[$Income received in advance,$22500],[$Trade receivables,$130000],[$Trade payables,$100000],[$Sales$,1400000],[$Net profit,$1200000],[$Gross profit,$600000],[$Other income,$900000],[$Prepaid expenses,$11800],[$Inventory$,315000],[$Mortgage loan $($repayable on $30$ June $2026),720000]]$

Additional information:

The following balances appeared in the books of Quantum Limited on $30$ June $2023$:

Trade receivables $-$ R$140000.$

Inventory$-$R$475000.$

Trade payables $-$ R$68000.$

Assume $365$ days in a year.

Purchases are equal to $80\%$ of cost of sales of which $10\%$ are made in cash.

Cash sales are equal to $40\%$ of total sales.

Number of ordinary shares issued $=500000$

Share price $=$ R$68$

EPS $-$ R$2\mathrm{.}40$

REQUIRED:

$5\mathrm{.}1$ Calculate and comment on the following ratios for Quantum Linted at $30$ June $2024$

Show all calculations

Round off your final answers to two $(2)$ decrmal places:

$5\mathrm{.}1\mathrm{.}1$ Gross profit margin $(2023=35\%$

$(3$ Marks$)$

$5\mathrm{.}1\mathrm{.}2$ Currentratio $(2023-2\mathrm{.}2)$

$(5)$ Mats$)$

$5\mathrm{.}1\mathrm{.}3$ Debt Equity ratio $2028-40\%$

$(6$ Marks$)$

$5\mathrm{.}1\mathrm{.}4$ Average trade creditors settiement peniod $12023-80$ days

$(7.$Mares$)$

$5\mathrm{.}1\mathrm{.}5$ Prioe earnings ratio $/2023-30\mathrm{.}5)$

$(5)$ Hars:

$5\mathrm{.}2$ Briefly explain, with a calculation for Ouantum Limied what is meant by the term "market captaisation"

$(3$ Maks

$5\mathrm{.}3$ Assuming that Ouantum Limited has dividencs yed of $3\mathrm{.}34$ calculate the dividend per share.

$2$Mathe

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