QUESTION $4$

$[20$ Narks$)$

REQUIRED

Prepore the Cash Flow Statement of Concha Limted for the year ended $31$ December $2023.$

Additional information

Seling and administotive erpenses included the following:

There were no disposals of propety, plant and equipment during $2023.$

Tobal dividends for the yer ended $31$ December $2023$ amourled to K$216000.$

Ninety percent $(90\%)$ of all puchsses and soles of invenbries are on credz. REQUIRED

Use the information provided in Question $4$ to answer the following:

$5\mathrm{.}1$ Calculate the following ratios $($expressed to two decimal places$)$ for $2023$ only. Note: Use the

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

$5\mathrm{.}1\mathrm{.}1$ Profit margin $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}2$ Inventory turnover $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}3$ Debtor collection period $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}4$ Creditor payment period $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}5$ Return on assets $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}6$ Acid$-$test ratio $(2$ marks$)$

$5\mathrm{.}1\mathrm{.}7$ Earnings per share $(2$ marks$)$

$5\mathrm{.}2$ Comment briefly but meaningfully on the following ratios:

$20232022$

$5\mathrm{.}2\mathrm{.}1$ Return on equity $28\mathrm{.}21\%32\mathrm{.}56\%(2$ marks$)$

$5\mathrm{.}2\mathrm{.}2$ Current ratio $1\mathrm{.}20$:$11\mathrm{.}07$:$1(2$ marks$)$

$5\mathrm{.}2\mathrm{.}3$ Debt to assets $35\mathrm{.}27\%32\mathrm{.}29\%(2$ marks$)$