(25) QUESTION ONE The following information has been extracted from the financial records of Intjer Ltd Statement of Financial Position as at 30 June 2021 Assets 2021 2020 Non Current Assets 5 000 000 3 800 000 Inventory 500 000 700 000 Receivables 350 000 420 000 Cash 280 000 140 000 6 130 000 5 060 000 Equity and Liabilities Share Capital (R2 shares) 2 600 000 1 700 000 Retained Income 500 000 $40 000 Long term Debt 2 000 000 1 800 000 Payables 1030 000 620 000 6 130 000 5 060 000 Statement of Comprehensive Income for the year ended 30 June 2021 R Sales (75% on credit) 2 400 000 Cost of sales 1 600 000 Depreciation 62000 Interest expense 98000 Tax (30%) 160 000 Net Income after tax 300 000 Dividends 240 000 Retained Income 60 000 NB: Shares are currently trading at R3 per share Required: REGENT BUSINESS SCHOOL (RBS) July 2021 13 MASTER OF BUSINESS ADMINISTRATION - ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 1.1 Calculate the gross profit margin and net profit margin for the current year. (4) 12 Calculate the eamings per share (EPS) and dividends per share (DPS) for the current year. Describe what occurs to the difference between the EPS and the DPS value (6) 1.3 Calculate the return on equity. Will shareholders be happy with this retum? Discuss (2) Calculate and comment on the acid test ratio for both years. (5) Calculate and comment on the debt equity ratio for both years (5) Calculate the stock tumover rate for the current year and explain the meaning of 1.4 . 15 1.6 this ratio