Question $3$

$(30$ Marks$)$

$\backslash$table$[[$USUTHU CC STATEMENT OF FINANCIAL POSITION AS AT $28$ FEBRUARY $20\mathrm{.}5],[,20\mathrm{.}5,,20\mathrm{.}4],[,$R$,$R$],[$Share capital,$100000,,100000],[$Retained earnings,$30000,,10000],[$Long$-$term loan: Globe Bank,$100000,,100000],[$Furniture and fittings $($at carrying amount$),120000,,140000],[$Inventories$,100000,,100000],[$Trade payables control,$110000,,99000],[$Trade receivables control,$88000,,66000],[$Bank$,33000,,25000]]$

$\backslash$table$[[$Income tax payable,$000,2000],[$Sales$,000,360000],[$Purchases$,\backslash$table$[[320],[000]],290000],[$Administrative expenses,$000,45000],[$Interest on long$-$term loan,$000,10000],[$Ordinary dividend pad,$000,2000]]$

Additional information

The opening inventories for the years ending $20\mathrm{.}5$ and $20\mathrm{.}4$ amounted to R$80000$ and R$75000$ respectively

The income tax expense for the year ending $20\mathrm{.}4$ amounted to R$8000$ and the income tax expense for the current year is yet to be determined.

Required:

Calculate and comment on the following ratios of Usuthu CC for the year $20\mathrm{.}5$ & $20\mathrm{.}4.$

a$.$ Gross profit percentage

b$.$ Return on equity

c$.$ Current ratio

d$.$ Inventory turnover rate

e$.$ Debt$-$equity ratio

f$.$ Acid test ratio