CAPRI LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED $31$ DECEMBER $2021$ QUESTION $22\mathrm{.}3$ Comment briefly but meaningfully on the following ratios:

$(2$ marks$)$

$(2$ marks$)$

$(25$ Marks$)$

REQUIRED

$2\mathrm{.}1$ Use the statement of financial position as at $31$ December $2022,$ statement of comprehensive income

for the year ended $31$ December $2022$ and additional information for $2022($related to dividends and

shares$)$ to calculate the ratio $($expressed to two decimal places$)$ that would reflect each of the following:

$2\mathrm{.}1\mathrm{.}1$ The extent to which the claims of the short$-$term creditors are covered by assets that can

be translated into cash in the short term

$(2$ marks$)$

$2\mathrm{.}1\mathrm{.}2$ The extent to which long$-$term debt is covered by shareholders' funds

$(3$ marks$)$

$2\mathrm{.}1\mathrm{.}3$ The amount of funds available relative to sales, to pay the company's expenses other

than its cost of sales $($expressed as a percentage$)$

$(3$ marks$)$

$2\mathrm{.}1\mathrm{.}4$ The distributions during the period allocated to each ordinary share issued

$(3$ marks$)$

$2\mathrm{.}1\mathrm{.}5$ An indication of the percentage of the profit that has been put back into the company

$(3$ marks$)$

$2\mathrm{.}1\mathrm{.}6$ The ratio of a company's current stock price to its earnings per share

$(3$ marks$)$

$2\mathrm{.}2$ Suggest TWO $(2)$ ways of making an improvement with regard to each of the following ratios:

$2\mathrm{.}2\mathrm{.}1$ Debtor collection period

$(2$ marks$)$

$2\mathrm{.}2\mathrm{.}2$ Operating margin