2.1 The extracts of the financial statements of Zambezi Limited for 2020 and 2019 are provided below.

INFORMATION

Zambezi Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020
			R
Sales (all credit)			1 920 000
Cost of sales			1 200 000
Gross Profit			?
Extract of the Statement of financial Position 31 December 2020:	2020	2019
	(R)	(R)
Inventories	532 000	480 000
Accounts Receivable	300 000	504 000
Cash and cash equivalents	440 000	336 000
Current Liabilities	408 000	360 000

REQUIRED

Calculate the following for 2020. Where applicable, round off answers to two decimal places.

2.1 Gross Profit (2 marks)

2.2 Calculate the following ratios

Gross Profit Margin (5 marks)

2.3 Debtors collection period (5 marks)

2.4 Current ratio (5 marks)

2.5 Acid test ratio (5 marks)

2.6 Given that the industry average for Gross profit margin is 42%, comment on Zambezis Gross

profit margin?