QUESTION 5 REQUIRED Calculate the following ratios for 2022 and in each case state whether the...

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QUESTION 5 REQUIRED Calculate the following ratios for 2022 and in each case state whether the ratio for the company is better or worse than the industry average. Where applicable, express answers to the ratios to two decimal places. The ratios for the industry are provided in brackets. 5.1 Gross profit margin (Industry: 35.43%) 5.2 Trade payables average number of days (Industry: 65.03 days) Retum on capital employed (Industry: 31.49%) Operating profit margin (Industry: 28.42%) Acid test ratio (Industry: 1.72:1) Debt to equity (Industry: 74.39%) Inventory average number of days (Industry: 69.32 days) 5.4 5.5 5.6 5.7 INFORMATION Excerpts of financial data of Mayfair Limited for 2022 are as follows: Statement of Comprehensive Income for the year ended 31 December 2022 Sales Cost of sales Operating profit/Profit before interest and tax Interest expense Profit before tax Profit after tax Statement of Financial Position as at 31 December 2022 ASSETS Non-current assets Inventories Trade receivables Cash (20 Marks) EQUITY AND LIABILITIES (3 marks) (3 marks) (3 marks) (2 marks) (3 marks) (3 marks) (3 marks) R 11 000 000 7 690 000 2 410 000 400 000 2010 000 1 447 200 8 400 000 570 000 2 400 000 1 040 000 12 410000 Ordinary share capital Retained profit Long-term loan Trade payables Additional information Inventories and Trade payables on 31 December 2021 amounted to R460 000 and R1 000 000 respectively. 1. 2 3 000 000 860 000 7 090 000 1 460 000 12 410 000 Credit purchases for the year ended 31 December 2022 amounted to R7 800 000. The credit terms offered by the suppliers are 60 days. QUESTION 5 REQUIRED Calculate the following ratios for 2022 and in each case state whether the ratio for the company is better or worse than the industry average. Where applicable, express answers to the ratios to two decimal places. The ratios for the industry are provided in brackets. 5.1 Gross profit margin (Industry: 35.43%) 5.2 Trade payables average number of days (Industry: 65.03 days) Retum on capital employed (Industry: 31.49%) Operating profit margin (Industry: 28.42%) Acid test ratio (Industry: 1.72:1) Debt to equity (Industry: 74.39%) Inventory average number of days (Industry: 69.32 days) 5.4 5.5 5.6 5.7 INFORMATION Excerpts of financial data of Mayfair Limited for 2022 are as follows: Statement of Comprehensive Income for the year ended 31 December 2022 Sales Cost of sales Operating profit/Profit before interest and tax Interest expense Profit before tax Profit after tax Statement of Financial Position as at 31 December 2022 ASSETS Non-current assets Inventories Trade receivables Cash (20 Marks) EQUITY AND LIABILITIES (3 marks) (3 marks) (3 marks) (2 marks) (3 marks) (3 marks) (3 marks) R 11 000 000 7 690 000 2 410 000 400 000 2010 000 1 447 200 8 400 000 570 000 2 400 000 1 040 000 12 410000 Ordinary share capital Retained profit Long-term loan Trade payables Additional information Inventories and Trade payables on 31 December 2021 amounted to R460 000 and R1 000 000 respectively. 1. 2 3 000 000 860 000 7 090 000 1 460 000 12 410 000 Credit purchases for the year ended 31 December 2022 amounted to R7 800 000. The credit terms offered by the suppliers are 60 days.