C QUESTION D File C/Users/a161178/Desktop/QUESTION.pdf QUESTION 5 (20 Marks) Statement of comprehensive income of XYZ Ltd for the year ended 31 December 2018 2018 2017 4 000 12 000 Sales Cost of sales 2000 6.000 Gross profit 2000 6.000 Operating expenses 1000 5000 Operating profit 1.000 1000 Interest and other income 100 200 Earnings before interest and taxation 900 800 Taxation 252 224 Net profit after taxation 648 576 Preference dividends 0 0 Earnings available to ordinary shareholders 648 576 Ordinary dividends 200 100 Retained profit for the year 448 476 Retained profit (1 Jan) 576 100 Retained profit (31 Dec) 1024 576 Type here to search ENG 20 LE * 13 Npdf Co File C/Users/a161176/Desktop/QUESTION.pdf Statement of financial position of XYZ Ltd for the year ended 31 December 2018 2018 2017 Assets Non-cument assets 1265 1300 Current assets 2189 1776 Inventory 500 500 Trade and other receivables 200 400 Cash and cash equivalents 1489 876 Total assets 3454 3076 Equity and liabilities Shareholders equity Ordinary shares 1000 1000 Share premium 200 200 Retained profit 1024 575 Non-current labties 750 1000 Current labies 480 300 Trade and other payables 200 100 200 150 Accrued expenses 80 50 Shareholders for dividends Total equity and liabilities 3.454 3076 ype here to search Assume a 365-day financial year NOTES: All sales are on credit EI ENG 09:35 2021/01/12 REQUIRED: Calculate the following ratios for 2017 and 2018 and also state if there was an improvement or detoriation in the calculated ratio: 5.1 Gross profit margin 5.2 Acid test (quick) ratio 5.3 Cash conversion cycle END OF PAPER 5 (3 marks) (3 marks) (14 marks)