QUESTION $2(20$ Marks$)$

REQUIRED

$2\mathrm{.}1$ Use the information provided below to calculate the ratios for $2022($expressed to two decimal places$)$

that would reflect each of the following. Note: Use the formulas provided in the formula sheet only $($that

appear after QUESTION $5).$

$2\mathrm{.}1\mathrm{.}1$ The efficiency with which the company can produce and sell its products before

extraneous costs are deducted.

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}2$ The amount of time taken by the company to pay its trade debts. $(2$ marks$)$

$2\mathrm{.}1\mathrm{.}3$ A measurement of the ability of management to use the company$$s net assets to generate

sales revenue.

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}4$ The amount of profit that the company generates in relation to its equity and borrowed

capital.

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}5$ The portion of the company's profit that is allocated to each outstanding ordinary share. $(2$ marks$)$

$2\mathrm{.}1\mathrm{.}6$ The percentage of the profit that has been put back into the company. $(2$ marks$)$

$2\mathrm{.}2$ Comment on the following ratios by stating TWO $(2)$ significant points in each case:

$20222021$

$2\mathrm{.}2\mathrm{.}1$ Profit margin $($Net profit margin$)10\mathrm{.}27\%7\mathrm{.}85\%(2$ marks$)$

$2\mathrm{.}2\mathrm{.}2$ Price earnings ratio $7\mathrm{.}25$ times $5\mathrm{.}32$ times $(2$ marks$)$

$2\mathrm{.}2\mathrm{.}3$ Return on assets $42\mathrm{.}86\%33\mathrm{.}25\%(2$ marks$)$

$2\mathrm{.}2\mathrm{.}4$ Debt to assets $46\mathrm{.}43\%55\mathrm{.}67\%(2$ marks$)$