(20 MARKS) REQUIRED Use the infomet on provided below to answer the following quentions. Note: Use the formulas provided in the formula sheet only (that appear affer QuEstionis). Arowars lo the ratos must be expressed to two decimat places. 4.1 What percentaoe of the sales is made up of 1 et income? (2 marks) 42 Cakulate nwo (2) approprate fiquidty ratios and commient on the bqudty of the company. (6 maks) 43 calculate the relevant ratios and comment on the effectiveness with which the conpan) has employed the debtors and creditors. (6) maks) company by examining the income from operabions and the aftertax returns eamed. Comment on your caktulations. (6) marks) Additional information - Ninety percent (90%) of the sales is on credit * All purchases are on credit. - Crect terms to debiors are 6 i) days and credit terms from suppliers are 90 days. FORMULA SHEET \begin{tabular}{|c|c|c|} \hline Gioss profit & x & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & x & 100 \\ \hline No of ordinafy shares ssued & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit affer tax & x & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Dividends for the yoar & & 100 \\ \hline No. of ordinary shares isweed & & 1 \\ \hline \end{tabular} AverageinventoryCostofsales \begin{tabular}{|c|c|} \hline Current asseis \\ \hline Current liabitites \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & & 365 \\ \hline Credif sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets - Inventory \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Aooounts payable & X & 365 \\ \hline Credipurchases & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total debt & X & 100 \\ \hline Total asse's & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Operating profit & x & 100 \\ \hline Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Non-current debt & X & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profitafiertax & x & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Operating profit \\ \hline interest expense \\ \hline \end{tabular} (20 MARKS) REQUIRED Use the infomet on provided below to answer the following quentions. Note: Use the formulas provided in the formula sheet only (that appear affer QuEstionis). Arowars lo the ratos must be expressed to two decimat places. 4.1 What percentaoe of the sales is made up of 1 et income? (2 marks) 42 Cakulate nwo (2) approprate fiquidty ratios and commient on the bqudty of the company. (6 maks) 43 calculate the relevant ratios and comment on the effectiveness with which the conpan) has employed the debtors and creditors. (6) maks) company by examining the income from operabions and the aftertax returns eamed. Comment on your caktulations. (6) marks) Additional information - Ninety percent (90%) of the sales is on credit * All purchases are on credit. - Crect terms to debiors are 6 i) days and credit terms from suppliers are 90 days. FORMULA SHEET \begin{tabular}{|c|c|c|} \hline Gioss profit & x & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & x & 100 \\ \hline No of ordinafy shares ssued & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit affer tax & x & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Dividends for the yoar & & 100 \\ \hline No. of ordinary shares isweed & & 1 \\ \hline \end{tabular} AverageinventoryCostofsales \begin{tabular}{|c|c|} \hline Current asseis \\ \hline Current liabitites \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & & 365 \\ \hline Credif sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets - Inventory \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Aooounts payable & X & 365 \\ \hline Credipurchases & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total debt & X & 100 \\ \hline Total asse's & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Operating profit & x & 100 \\ \hline Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Non-current debt & X & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profitafiertax & x & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Operating profit \\ \hline interest expense \\ \hline \end{tabular}