estion 1. Section B. Speed Motors Ltd presents you with the Profit or Loss Statement and Statement of Financial Position for the years 2019 and 2020: Speed Motors Ltd Statement of Profit or Loss Sales Revenue Cost of Sales Gross Profit Administration and Distribution Expenses Profit before Tax Income Tax Expense 2020 2019 000 000 4.500 3,000 (2.100) (900) 2,400 (1.200) 2,100 (1,080) 1,200 1,020 (600) (510) 600 510 Profit for the Year Speed Motors Ltd Statement of Financial Position 2020 000 000 2019 000 000 Non Current Assets: Land and Buildings Cost 4,800 4,350 Depreciation (600) 4,200 (450) 3,900 Plant and Machinery Cost 1,800 1,200 Depreciation (360) 1.440 (300) 5,640 900 4,800 Current Assets: Inventory 900 300 Receivables 1.200 2.100 300 600 Total Assets 7,740 5,400 Equity: Share Capital-E1 Ordinary Shares Retained Earnings Current Liabilities: Bank Overdraft Payables Taxation 3,600 3,600 930 4,530 660 4,260 1,770 630 1,110 210 330 3.210 300 1.140 7,740 5,400 Take into consideration that the dividend for 2019 was 300,000 and for 2020 330,000. Required: a. You are asked to calculate the following ratios: L Gross Profit Margin apital employed equity + long term ba Operating Profit Margin opecating profitx 100/sales. Return on Capital Employed Nex profit x 100/ capital iv. Net Assets Turnover v. Current ratio vi. Quick ratio vii. Accounts Receivable Collection Period vill Accounts Payable Payment Period ix. Inventory Collection Period employed (18 marks) 7