QUESTION 4 REQUIRED (20 Marks) Use the information given below to calculate the following ratios for 2019. (Where applicable, round off answers to two decimal places.) Also provide a brief interpretation of each answer. The comparative figures for 2018 are given in brackets. 4.1 Gross margin (2018: 60.53%) 4.2 Inventory turnover (2018: 5.02 times) 4.3 Acid test ratio (2018: 1.05:1) 4.4 Debt to equity (2018: 60.38%) 4.5 Return on equity (2018: 36.45%) 4.6 Debtors collection period (2018: 29.56 days) 4.7 Earnings per share (2018: 108.42 cents) INFORMATION (2 marks (3 marks (3 mark (3 mark (3 mar (3 mar (3 ma FIAMMA LIMITED EXTRACT OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales (all credit) 4 Operating expenses Operating profit Company tax Note: 1. The goods were sold at cost plus 90%. 2. The tax rate of the company is 30%. R 1 668 200 (486 000) 308 000 (86 400)