Question $1(18$ marks$)$ Gumba Gumba Limited is a food retailer and wholesaler. It operates $56$ outlets across the Republic of South Africa. The company was launched $15$ years ago by an entrepreneur, Robbie Bold. It developed through aggressive marketing and obtained a listing on the Alternative Exchange $($AltX$)$ of the Johannesburg Stock Exchange $($JSE$)$ in $2014.$ The summarised Statement of Financial Position and Statement of Comprehensive Income for the year ended $30$ September $2024$ have been obtained for analysis Gumba Gumba Limited Statement of Financial Position as at $30$ September $202420242023$ R$000$ R$000$ ASSETS Non$-$current assets $280141222370$ Property, plant and equipment $280141222370$ Investments $-0\mathrm{.}000\mathrm{.}00$ Current assets $170163151164$ Inventories $8723359297$ Trade and other receivables $3251027781$ Cash and cash equivalents $5042064086$ Total assets $450304373534$ EQUITY AND LIABILITIES Share capital and reserves $194605178810$ Share capital $7000070000$ Revaluation reserve $2875525110$ Retained earnings $9585083700$ Non$-$current liabilities $7425074250$ Long$-$term borrowings $7425074250$ Current liabilities $181449120474$ Trade and other payables $8800080000$ Short$-$term borrowings $9344940474$ Total equity and liabilities $450304373534$ Gumba Gumba Limited Statement of Comprehensive Income for the year ended $30$ September $202420242023$ Sales $853200742500$ Cost of sales $639900549450$ Gross profit $213300193050$ Operating expenses $126360110700$ Depreciation $81006750$ Operating profit $7884075600$ Finance costs $2430014850$ Profit before tax $5454060750$ Tax $2030022100$ Profit for the year $3424038650$ Below are selected average ratios for the food retail sector of the JSE as at $30$ September $2024$: Quick ratio $1\mathrm{.}25$ Earnings per share $($cents$)204$ Finance cost coverage $8$ times Debt to assets ratio $56\%$ Inventory turnover time $26$ days Trade receivables turnover time $18$ days Additional information: $25\%$ of sales were on credit. $$ Inventory on hand as at $30$ September $2022$ amounted to R$60388,$ while R$23614$ was due from customers. $$ The company$$s authorised share capital consists of $25$ million ordinary shares, of which $13$ million shares have been issued. $$ The company$$s share price as at $30$ September $2024$ was R$481\mathrm{.}1$ Calculate and comment on the following ratios for Gumba Gumba Limited for the years $2023$ and $2024$: $1\mathrm{.}1\mathrm{.}1$ Quick ratio earnings per share $(3)1\mathrm{.}1\mathrm{.}2$ Earnings per share $(3)1\mathrm{.}1\mathrm{.}3$ Finance cost coverage $(3)1\mathrm{.}1\mathrm{.}4$ Debt to assets ratio $(3)1\mathrm{.}1\mathrm{.}5$ Inventory turnover time $(3)1\mathrm{.}1\mathrm{.}6$ Trade receivables turnover time $(3$