REQUIRED

Use the information provided below to answer the following questions. Note: Use the formulas provided in

the formula sheet only $($that appear after QUESTION $5).$ The answers to the ratios must be expressed to two

decimal places.

$4\mathrm{.}1$ Calculate the ratio that determines the company's proftability after the cost of sales have

been deducted from the sales.

$4\mathrm{.}2$ Compare the earnings per share with the dividend per share for $2023.$ What conclusions

can you draw from this comparison?

$4\mathrm{.}3$ Wil the shareholders be satisfied with the return eamed by the company on the own

capital? Motivate your answer by using an appropriate ratio.

$4\mathrm{.}4$ Comment on the ablity of the company to settle its short$-$term obligations with justits most

liquid current assets. Use a ratio to support your answer.

$4\mathrm{.}5$ Comment on the effectiveness with which the company has managed the inventory,

debtors and creditors. Support your answer by calculating the relevant ratios.

INFORMATION

Excerpts of the financial data of Daiken Limited for $2023$ are as follows: $\begin{array}{cc}\text{S}\text{T}\text{A}\text{T}\text{E}\text{M}\text{E}\text{N}\text{T}OF\text{F}\text{I}\text{N}\text{A}\text{N}\text{C}\text{I}\text{A}\text{L}\text{P}\text{O}\text{S}\text{I}\text{T}\text{I}\text{O}\text{N}ASAT31\text{D}\text{E}\text{C}\text{E}\text{M}\text{B}\text{E}\text{R}2023& ?\\ ?& R\\ \text{N}\text{o}\text{n}-\text{c}\text{u}\text{r}\text{r}\text{e}\text{n}\text{t}\text{a}\text{s}\text{s}\text{e}\text{t}\text{s}& 1280000\\ \text{I}\text{n}\text{v}\text{e}\text{n}\text{t}\text{o}\text{r}\text{i}\text{e}\text{s}& ?\\ \text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{r}\text{e}\text{c}\text{e}\text{i}\text{v}\text{a}\text{b}\text{l}\text{e}& 680000\\ \text{C}\text{a}\text{s}\text{h}& 8000\\ \text{O}\text{r}\text{d}\text{i}\text{n}\text{a}\text{r}\text{y}\text{s}\text{h}\text{a}\text{r}\text{e}\text{c}\text{a}\text{p}\text{i}\text{t}\text{a}\text{l}& 900000\\ \text{R}\text{e}\text{t}\text{a}\text{i}\text{n}\text{e}\text{d}\text{e}\text{a}\text{r}\text{n}\text{i}\text{n}\text{g}\text{s}& 172000\\ \text{L}\text{o}\text{n}\text{g}-\text{t}\text{e}\text{r}\text{m}\text{l}\text{o}\text{a}\text{n}& 658000\\ \text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{p}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}& 220000\\ \text{C}\text{o}\text{m}\text{p}\text{a}\text{n}\text{y}\text{t}\text{a}\text{x}\text{p}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}& 72000\\ \text{D}\text{i}\text{v}\text{i}\text{d}\text{e}\text{n}\text{d}\text{s}\text{p}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}& 60000\end{array}$

Additional information

All purchases and sales of inventories are on credit.

There were $450000$ ordinary shares in issue during $2023.$

An interim dividend of R$50000$ was paid on $30$ June $2023.$

Credt terms to debtors were $30$ days whilst credtors have granted credit terms of $60$ days.

Inventories were replaced after approximately $30$ days during $2022.$