QUESTION THREE [25] Use the data provided to answer the questions that lollow relating to Newtech Ltd for 2017: Abbreviated Statement of Financial Position: Assets 201? 2016 Non Cu rrentr'Fixed 4 200 000 3 000 000 Inventory 400 000 600 000 Receivables 1 550 000 1 200 000 CSSh M mom 6 3'50 000 5 100 000 Equity and Liabilities Share Capital (R2 shares) 4 200 000 4 000 000 Retained Income 600 000 300 000 Long term Debt 250 000 200 000 Payables 1 700 000 600 000 6 750 000 5 100 000 The abbreviated Statement of Comprehensive for the year ended 2017: Sales (10% on credit) 10 200 000 Cost of sales (80% on credit) 4 080 000 Expenses 3 200 000 Net Income after Tax 2 000 000 Dividends 1 700 000 Retained Income 3 000 000 NB: Shares are currently trading at R2, 80 per share. REGENT BUSINESS SCHOOL (RES) July 2019 14 POSTGRADUATE DIPLOMA IN MANAGEMENT ACADEMIC AND ASSESSMENT CALENDAR Required 3.1 Calculate the net profit on turnover for 2017. (2) 3.2 Calculate the earnings yield and dividend yield for 2017 and explain their significance to (prospective) shareholders. (8) 3.3 Accounts Payable Turnover 3.3.1 Calculate the accOunts payable period (in days). noting that Newtech Ltd has. after tough negotiations secured a 90 day accOunt with all its creditors. Note: Use average accounts payable for this calculation. (4) 3.3.2 Is this an ideal situation? Otter constmctive advice to Newtech Traders. (3) 3.4 Calculate the return on equity. Would shareholders be happy with the current return? Whthy not? (4) 3.5 Calculate the inventory turnover ratio (use average inventory) and explain the significance of this ratio. (4)