A. a. Henry Black Ltds Balance Sheet as at 30 June, 2021 and Profit and Loss Statement for the financial year ending 30 June, 2021 (2020-21) contained the following items :

- Accounts Receivable (and Average Accounts Receivable for 2020-21), $50,000,000 - Inventories (and Average Inventories for 2020-21), $80,000,000

- Other Assets, $270,000,000

- Total Liabilities (Current and Long-term), $150,000,000

- Issued and paid-up capital 15,000,000 fully paid ordinary shares $150,000,000

- Other Shareholders Equity Items, being Reserves and Retained Earnings, $100,000,000 - Sales (all credit), $800,000,000

- Cost of sales, $600,000,000

- Earnings before Interest and Taxes (EBIT), $100,000,000

- Interest Expense, $20,000,000 (paid on Total Liabilities above)

- Company Income Tax Rate, 30%

- Interest rate on Total Liabilities, 13.3333%

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Additional information.

All reported items and the resultant profit or loss figures relate to the companys basic operations. The company operates in a competitive industry.

REQUIRED :

Calculate as at 30 June, 2021, the following financial ratios for Henry Black Ltd :

i. Return on sales (also known as profit margin or operating profit margin)

ii. Return on assets (ROA)

iii. Return on equity (ROE)

iv. Interest coverage

v. Debt to equity

vi. Inventory turnover

vii. Average receivable turnover

viii. Average collection period

[NOTE: Show all workings.]

b. Comment upon these ratios as to whether they are favourable or not for a prospective investor. Is there any further information you require before you make an investment recommendation?