$$

QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the information provided in QUESTION $1$ to answer the following questions for the financial year ended $31$ December $2023.$

Note:

Use the formulas provided in the formula sheet only $($that appear after QUESTION $5).$

Answers to the ratios must be expressed to two decimal places.

$2\mathrm{.}1$ Comment on the management of debtors and creditors after calculating the relevant ratios.

$2\mathrm{.}2$ Determine the percentage of the profit after tax that has been retained by the company.

$(6$ marks$)$

$(3$ marks$)$

$2\mathrm{.}3$ Calculate the retum on capital employed and comment on your answer.

$(3$ marks$)$

$2\mathrm{.}4$ Would prospective lenders be concerned about the relative proportion of borrowed capital and own capital? Motivate your answer by calculating the relevant ratio.

$(3$ marks$)$

$2\mathrm{.}5$ Calculate the ratio that measures the efficiency with which the non$-$current and current assets of company were managed.

$(2$ marks$)$

$2\mathrm{.}6$ Comment on the ability of the company to settle its short$-$term debts under distress conditions. Use a relevant ratio to motivate your answer.

$(3$ marks$)$

INFORMATION

The following information was obtained from the financial records of Fiona Limited:

$\backslash$table$[[\backslash$table$[[$Fiona Limited$]]],[$Statement of Comprehensive Income for the year ended $31$ December:$],[,2023(R),2022(R)$

INFORMATION

The following information was obtained from the financial records of Fiona Limited:

$\backslash$table$[[\backslash$table$[[$Fiona Limited$]]],[$Statement of Comprehensive Income for the year ended $31$ December:$],[,2023(R),2022(R)$