OUESTION A

$(20$ Marks$)$

REOUTRED

Use the inlormation provided below to answer the following questions

$4\mathrm{.}1$ Calculale the following ratios for $2023$ only. Note: Use the formulas provided in the formula shee! only $($that appear ather QUESTION $5).$ Answers to the ralios must be expressed to tho decimal places.

$4\mathrm{.}1\mathrm{.}1$ Inventory turnover

$4\mathrm{.}12$ Net profi margin

$(2$ marks$)$

$4\mathrm{.}13$ Debt$-$equity

$(2$ marks$)$

$(2$ maks$)$

$4\mathrm{.}14$ Earrings per share

$(2$ marks$)$

$4\mathrm{.}1\mathrm{.}5.$ Finance cost coverage

$(2$ marks$)$

$4\mathrm{.}1\mathrm{.}6$ Average collection period

$42$ Wil the company be able to pay its short$-$lerm debts if business conditions are unfavourable? Mofivate your answer by using an approprate ratio.

$(2$ grarks$)$

$4\mathrm{.}3$ Wil the tharenolders of the company be satisfied with the retum on their investments? Support your answer with the use of an appropriate ratio.

$(5$ marks$)$

$(4$ marks$)$

INORMATION

The extracts of the financial statemerls of Falorice$-$Limited for $2022$ and $2023$ are provided below

$\backslash$table$[[$FABRICE LIMITED,$],[$STATEMENT OF COMPREHENSIVEINCOME FOR THE YEAR ENDED $31$ DECEMBER $2023,],[,],[$Sales$,$R$],[$Cost of sales,$990000],[$Eamings before interest and taxes,$600000],[$Intarest expense,$250000],[$Profitbefore tax,$30000],[$Compary tax,$220000]]$

STATEMENT OF FINANCIAL POSIION AS AT $31$ DECEMBER:

$\backslash$table$[[,2023(R),2022(R)$