Calculate and comment on the following ratios (where applicable round off answers to two decimal places):

4.1.1 Gross margin (3)

4.1.2 Current ratio (3)

4.1.3 Acid-test ratio (4)

4.1.4 Debtors collection period (3)

4.1.5 Inventory turnover (4)

4.1.6 Return on assets (3)

INFORMATION: Caht Enterprises Extract from the Statement of Comprehensive Income for the year ended 31 March 2019

	R
Sales (all credit)	610 000
Gross profit	390 000
Operating profit	170 000
Interest expense	17 000
Profit before tax	153 000
Net profit after tax	110 000

	R	R
Assets
Non current assets		700 000
Current assets		340 000
Inventory	70 000
Debtors	150 000
Bank	120 000
		1 040 000
Equity and Liabilities
Owners equity		600 000
Non-current liabilities		300 000
Current liabilities		140 000
		1 040 000