Cape Limited is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2020 being reminiscent of their performance As the Cost Accountant of Cape Limited, you compiled the following statement of Financial Position as at 31 August 2021 2021 2020 R'000 R'000 3290 3 075 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material 4 858 4 551 1 033 2069 900 690 790 737 Trade receivables Cash in bank 2 345 2 845 8 148 7 626 5 593 4 578 2610 2610 Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities 2 983 1 968 1 024 1 368 1 531 1 680 441 560 Trade creditors Bills Payable Provision 810 810 280 310 8 148 7 626 HMAC200-1-July-Dec2021-FA1-CTM-V.2-03082021 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2021 2021 2020 R'000 R'000 Revenue (all sales are on credit) 9 799 9 460 Cost of sales (6 100) (6 200) Gross profit 3 699 3 260 Operating expenses (1 145) (1 118) Profit from operations 2 554 2 142 Finance costs (204) (192) Profit before tax 2 350 1 950 Income tax expense (535) (415) Net profit for the year 1 815 1 535 Depreciation included in cost of goods sold Operating expenses 340 330 Con almalarinin ad 400 00 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2021 2021 2020 R'000 R'000 Revenue (all sales are on credit) 9 799 9 460 Cost of sales (6 100) (6 200) Gross profit 3 699 3 260 Operating expenses (1 145) (1 118) Profit from operations 2 554 2 142 Finance costs (204) (192) Profit before tax 2 350 1 950 Income tax expense (535) (415) Net profit for the year 1 815 1 535 330 Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued 340 5 100 5 200 425 317 317 317 Note: key figures as at 31 August 2019: (a) Capital and reserves R 3 850 000 (b) Trade receivables R 721 000 (c) Finished goods inventory R 2017 000 (d) Materials inventory R 920 000 Required: Calculate the following ratios for the years 2021 and 2020: 2.1 Net profit percentage 2.2 Return on assets 2.3 Return on average equity 2.4 Gross profit percentage 2.5 Debtors collection period 2.6 Average finished goods inventory turnover 2.7 Average materials inventory turnover 2.8 Current ratio (5 marks) (5 marks) (5 marks) (5 marks) (5 marks) (5 marks) (5 marks) (5 marks) (Note to the student: show all formula and calculations to earn full marks)