-20 QUESTION 3 REQUIRED 3.1 Use the information provided below to calculate the following ratios. Where applicable, round off answers to two decimal places. 3.1.1 Gross profit margin 3.1.2 Operating profit margin 3.1.3 Inventory turnover period 3.1.4 Trade receivables period 3.1.5 Trade payables period 3.1.6 Current ratio 3.1.7 Acid test ratio 3.1.8 Return on capital employed 3.2. Comment on the control of debtors by Saturn Limited. 3.3 Suggest TWO (2) ways in which Saturn Limited can improve its operating profit margin. STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 R Cost of sales Gross profit Operating profit Interest expense Profit before tax Tax (30%) 2,600,000 1,400,000 600,000 40,000 560,000 Statement of financial position 2018 2019 R R Assets Non Current assets Inventories Acclunts receivable 780,000 500,000 240,000 1,520,000 600,000 451,000 199,000 1,250,000 Equity + Liabilities Equity Long term Loan Accounts payable Bank over draft 960,000 340,000 180,000 40,000 1,520,000 800,000 380,000 60,000 10,000 1,250,000 Additional information 1. The ratio of credit sales to cash sales is 3:1 respectively, 2. Purchases on credit amounted to R1 324 500 for the year ended 31 December 2019, 3.Credit terms to debtors are 30 days