Calculate: 3.1. The debtors average collection period and comment. (Last year was 37 days) Note: Debtors are given 30 days net to settle their accounts. (5) 3.2 The creditors payment period and comment (Last year was 88 days All creditors accounts are 90 days less 2%). (5) 3.3 The price to earnings ratio for 2020 and explain the significance of this ratio. (9) 3.4 The debt equity ratio and explain its significance to decision makers. (6)

PGDIPM_Financial Manager PGDIPM_Financial Mani X C Get Homework Help With C + V E file:///C:/Users/BH%20Sithole/AppData/local/Microsoft Windows/INetCache/IE/EOXQRGO3/PGDIPM_Financial%20Management%20(1).pdf QUESTION THREE [25] The following information was selectively extracted from the accounting records of Hoskin Ltd as at 29 February 2020 (the end of their financial year): 2020(R) 2019(R) Sales (50% on credit) Cost of Sales (80% of goods purchased on credit) Net Income after tax Tangible Assets Inventory Receivables 2 200 000 1 200 000 240 000 1 500 000 1 470 000 200 000 100 000 50 000 250 000 300 000 220 000 620 000 Cash 410 000 Payables Loans at 9% p.a. Share Capital (500 000 ordinary shares at R2 each Retained Income Share premium NB: a. Shares are currently trading at R4, 10 per share. 210 000 1 000 000 250 000 140 000 65 000 1 000 000 230 000 140 000 2 PGDIPM_Financial Manager PGDIPM_Financial Mani X C Get Homework Help With C + V E file:///C:/Users/BH%20Sithole/AppData/local/Microsoft Windows/INetCache/IE/EOXQRGO3/PGDIPM_Financial%20Management%20(1).pdf QUESTION THREE [25] The following information was selectively extracted from the accounting records of Hoskin Ltd as at 29 February 2020 (the end of their financial year): 2020(R) 2019(R) Sales (50% on credit) Cost of Sales (80% of goods purchased on credit) Net Income after tax Tangible Assets Inventory Receivables 2 200 000 1 200 000 240 000 1 500 000 1 470 000 200 000 100 000 50 000 250 000 300 000 220 000 620 000 Cash 410 000 Payables Loans at 9% p.a. Share Capital (500 000 ordinary shares at R2 each Retained Income Share premium NB: a. Shares are currently trading at R4, 10 per share. 210 000 1 000 000 250 000 140 000 65 000 1 000 000 230 000 140 000 2