QUESTION (20 marks) Popular Pets (Pty) Ltd is a relatively new company. During the covid pandemic, Misses Cat, (the owner of the business) noticed a steep increase in pet adoptions and saw this as a window of opportunity to open a pet shop with affordable low-cost pet pamper products that fit the pockets of the average Joe, to also be able to spoil their furry friend. The business started in 2020. The following are the Trail balances of Popular Pets (Pty) Ltd for the past 3 years: Account 2022 2021 2020 R R R Accounts Receivable 4 680 4 268 3 358 Cash 4 140 2 718 2 246 Cash Flow from Operations 6 300 5 628 4 690 Cost of Goods Sold 5 340 4 260 3 780 Current Assets 15 264 10 060 8 104 Current Liabilities 4 442 3 086 2 734 Dividends Paid 240 174 224 Earnings Per Share - Basic 7 7 4 Income from Operations 4 660 3 740 3 780 Interest Expense 86 760 640 Interest Paid 86 62 88 Inventory 5 000 2 444 1 970 Long Term Investments 2 000 870 - Market Price at Year End 220 192 156 Net Fixed Assets 17 264 10 930 - Net Income 4 524 2 580 - Other Assets - - - Revenue 10 000 8 000 7 560 Shares Outstanding - - - Short Term Investments 1 444 630 530 Tax Expense 50 400 300 Total Assets 17 264 10 930 8 600 Total Liabilities 4 822 4 570 3 726 Total Stockholders' Equity 8 000 7 000 2 140

REQUIRED: You have learned about financial ratios and the value of comparing companies performance. You decided it would be an innovative idea to create an excel template where you only have to update your financial statements on a yearly basis with the latest information and the financial ratios will be calculated automatically. An excel template has already been provided for you. This will be your answering sheet to submit. You must make use of this excel template and excel formulas to calculate the required ratios.

Ratios sheet (13 marks) Make use of excel formulas to extract the data from the Data-Sheet and calculate the ratios for the 2022 year. IMPORTANT: No marks will be awarded if the answers were HARD TYPED in the excel columns. The following ratios are required to be calculated for the 2022 financial year: o Growth Ratios 1. Sales Growth 2. Income Growth 3. Asset Growth o Profitability Ratios 4. Profit Margin 5. Return on Assets 6. Return on Equity 7. Dividend Pay-out Ratio 8. Price Earnings Ratio o Solvency Ratios Given as an example: Debt to Total Assets

Graphs sheet (7 marks) Based on your calculations on the Ratio sheet, make use of the information given on the 2021 year and your calculations for the 2022 year to draw up two pie charts (one for each year) to illustrate the Growth Ratios movement over these two years. Requirements and specifications for the graphs: 1. Make use of a Pie chart. 2. Your charts must have titles. 3. Your pie chart style must indicate the % allocated to each ratio. 4. Your pie charts must be more or less the same size for each consecutive year. Data Sheet: The data sheet, consisting of the Trail balance amounts has been provided for your convenience. The data on the data sheet must be used to calculate the ratios on the ratio sheet