125 QUESTION FOUR The following balances/data was extracted from the accounting records of Rosie Blue February 2015, the end of their financial year. Share capital (900 000 shares originally issued at R2 each) 1 Retained income Non Current Assets Inventories Receivables Cash/Bank Payables Loans at 15% p.a. Net profit after tax Market price of share Dividends per share Required 4.1 Calculate and comment on the following ratios: Ltd on 28 800 000 160 000 750 000 220 000 600 000 300 000 730 000 180 000 765 000 270c 65c .1.1 Current ratio. (last year 2.33: 1) 4.1.2 Acid test ratio. (last year 1.58: 1) 2 Calculate the PE (Price Earnings) ratio and explain what a low PE ratio might mean. 4.3 Calculate the earnings per share. Will shareholders be happy with this? Why? 4.4 Calculate the market to book ratio and explain the significance of this ratio. 4.5 Calculate and comment on the debt equity ratio. 4.6 Calculate the retained income for the year. (4)