Extracts from the financial statements of QTR Projects Limited for the year ended 31 December 2021 are
Question:
Extracts from the financial statements of QTR Projects Limited for the year ended 31 December 2021 are provided below:
Extract of the Statement of Comprehensive Income
R
Sales (Credit) 506 500
Cost of sales (250 000)
Gross profit 256 500
Operating expenses (203 100)
Operating profit 53 400
Interest expense (14 500)
Profit before tax 39 100
Tax (11 730)
Profit after tax 27 370
Extract of the Statement of Financial Position
R R
Non-current assets 300 000
Current assets 82 000
Trading inventory 50 000
Debtors 30 000
Bank 2 000
382 000
Owners’ equity 262 000
Non-current liabilities 80 000
Current liabilities 40 000
Creditors 40 000
382 000
Note: Inventory on 1 January 2021 amounted to R40 000.
Required:
Calculate each of the following ratios and round off your answers to two (2) decimal places:
1.1 Gross margin (5)
1.2 Debtors collection period (5)
1.3 Inventory turnover (5)
1.4 Acid-test ratio (5)
1.5 Interest coverage (5)
