(20 Marks QUESTION 5 FINANCIAL ANALYSIS REQUIRED: Ratios for 2017 Dan-Dan Limited Extract of Statement of comprehensive income for the year ended 31 December 2017 2017 2016 Sales (all on credit) 3 201 150 1 937 300 Cost of sales 2 618 010 1 599 370 Operating profit 183 140 122 642 Company tax 25% 45 785 30 660 Net profit after tax 137 355 91 982 Dan-Dan Limited Extract of Statement of financial position on 31 December: 2017 2016 2 866 530 Current assets Inventories 482 200 Trade and other receivables 261 290 4 974 530 38 860 155 200 2 474 030 2 306 440 Cash and cash equivalents 1 796 090 326 950 Marketable securities Current liabilities 1 088 860 588 310 190 660 192 040 Accounts payable Other current liabilities 898 200 396 270 Calculate the ratios for 2017, correct to two decimal places. 1. Profit margin 2. Gross margin 3. Current ratio 4. Acid test ratio (2 mark (2 mar (2 marl (4 mar (4 mar (3 ma (3 mar 5. Inventory turnover 6. Debtors collection period 7. Creditors collection period FND OF PAPER

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