SA SUPP$\_$JAN$24\_$S$1$ ADBM $\_$Bl

BM$\%20\_$Business$\%20$Finance$\%20(1).$pdf

$\frac{3}{11}$

$100\%$

QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the information provided in Question $1$ to answer the following questions:

$2\mathrm{.}1$ Calculate the following ratios for $2023.$ Note: Use$-$the formulas provided in the formula sheet only $($that appear after QUESTION $5).$ Answers to the ratios must be expressed to two decimal places.

$2\mathrm{.}1\mathrm{.}1$ Gross profit margin

$2\mathrm{.}1\mathrm{.}2$ Acid test ratio

$(2$ marks$)$

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}3$ Return on equity

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}4$ Inventory turnover

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}5$ Debt to assets

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}6$ Dividend per share

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}7$ Average payment period

$(2$ marks$)$

$2\mathrm{.}2$ Comment on the following ratios that have been calculated for Torga Limited. Provide TWO $(2)$ significant comments for each one.

$\backslash$table$[[,-,2023,2022],[2\mathrm{.}2\mathrm{.}1,$Average collection period,$92\mathrm{.}57$ days,$59\mathrm{.}68$ days$],[2\mathrm{.}2\mathrm{.}2,$Earnings per share,$38$ cents,$45$ cents$],[2\mathrm{.}2\mathrm{.}3,$Current ratio,$6\mathrm{.}38$:$1,10\mathrm{.}11$:$1]]$

$(2$ marks$)$

$(2$ marks$)$

$(2$ marks$)$