You are provided with the financial indicators calculated from the financial statements of Small LTD for the past two years ended 30 April. The business uses the perpetual inventory system to value stock and a gross profit mark-up of 75% on cost. Solvency ratio Current rato Acid test ratio Rate of stock turnover Trading stock deficit as a % of cost of sales Stock holding penod Credit terms granted by creditors Debtors average collection period Return on shareholders' equity after tax Return on shareholders' equity: before tax Eamings per share Dividend per share Changes in total sales Gross profit on cost of sales Gross profil on sales Net proat after tax on sales Operating expenses on sales Operating profit on sales Return on total capital employed Debtequity ratio Interest rate on long term loans Net asset value per share Market price per share Sales 2022 3.0:1 38:1 0.6.1 END OF PAPER 3 120 days 60 days 28 days 22% 51 cents 12 cents 17% decrease 75% 42% 15% 26% 0.61 145 310 cent 330 cents REQUIRED study the financial indicators and then answer the questions which follow. R3 154 000 0.61 Explain the answers to each of the following questions and quote the actual ratios/percentages from the above list to support your answers 1% 90 days 60 days 35 days 18% 63 cents 5 cents 10% increase 40% 14% 30% 20% INN 300 cents 390 cents FC3 800 000 3.1 Should the directors be satisfied with the liquidity of the business and the control of stock? 3.2 Should the directors be satisfied with the operating activities as reflected in the Income Statement? 3.3 Should the shareholders be satisfied with the returns, earings, dividends and share price? 3.4 The directors want to raise more funds for expansion of the business. Should they issue shares or raise kans 2021 (10 Marks) (10 Marks) (12 Marks) (8 Marks)