3.1 Calculate the following ratios for 2020 only. Express the answers to two decimal places. Gross margin (2 marks) 3.1.1 3.1.2 Current ratio (2 marks) (2 marks) 3.1.3 3.1.4 Debtors collection period Creditors payment period Return on equity (2 marks) (2 marks) 3.1.5 (2 marks) 3.1.6 Debt to assets (2 marks) 3.1.7 (2 marks) 3.2. (2 marks) Inventory turnover Would the shareholders be satisfied with their return on investment? Why? Is the current ratio for 2020 satisfactory? Explain. Comment on the collection of debts from credit sales, (2 marks) 3.3 3.4. INFORMATION 2019 2020 Extracts of the financial statements of Santia Limited on 31 December: R 20 3 850 000 INFORMATION Extracts of the financial statements of Santia Limited on 31 December: 2020 2019 R R 3.850.000 Sales 2 350 000 Cost of sales Operating profit Company tax 700 000 EN 179 200 250 000 200 000 Retained income 895 000 950 000 Non-current assets 1 000 000 630 000 Inventories 400 000 550 000 Non-current liabilities 240 000 150 000 1 000 000 Current liabilities (Accounts payable only) Ordinary share capital Trade and other receivables (Accounts receivable only) 1 400 000 IF 400 000 1 250 000 70 000 5 000 Cash and cash equivalents 10 000 Bank overdraft Note: 1. Seventy percent (70%) of the sales are on credit. 2. Sixty percent (60%) of the purchases of inventory are on credit. 3. Company tax is calculated at 28% of the pre-tax profit. 4. The credit terms to debtors are 30 days. 5. All assets, equity accounts and liabilities are included in the extract of the financial statements provided above