Extract of Statement of comprehensive income for the year ended 31 December 2017 3860 ARE (2 Dar Dan Limited 2017 2016 Sales (all on credit) Cost of sales Operating profit Company tax 25% 3 201 150 2 618 010 183 140 45 785 1 937 300 1599 370 122 642 30 660 Net profit after tax 137 355 91 982 Dan-Dan Limited Extract of Statement of financial position on 31 December 2017 2 866 530 482 200 Current assets Inventories Trade and other receivables Cash and cash equivalents Marketable securities 2016 4 974 530 38 860 155 200 261 290 1 796 090 2 474 030 326 950 2 306 440 1 088 860 588 310 Current liabilities Accounts payable Other current liabilities 190 660 192 040 898 200 396 270 Calculate the ratios for 2017, correct to two decimal places. 1. Profit margin 2. Gross margin 3. Current ratio 4. Acid test ratio 5. Inventory turnover 6. Debtors collection period 7. Creditors collection period Debit (R) CU MUS Hart Ltd TRIAL BALANCE AS AT 30 JUNE 2015 Balance Sheet Accounts Section Ordinary share capital - Company - New 991 600 80 000 150 000 Retained earnings Land and buildings Vehicles (cost) Equipment (cost) Accumulated depreciation on vehicles Accumulated depreciation on equipment Long-term loan: Mac Bank (14% p.a.) Debentures (15% p.a.)- Nao long term loan Investment in Vac (Pty) Lid Inventory (30 June 20.14) Debtors control Provision for bad debts 20 28AS. 200 48 000 112 000 128 000 2560 114 260 54 280 35 000 Bank Creditors control South African Revenue Services: Company tax - New Nominal accounts section Sales Purchases Sales returns Purchases returns Customs duty Carriage on purchases Carriage on sales 1 055 080 458 000 10 000 12000 Sundry expenses Salaries Motor expenses Interest on loan Discount allowed Commission income Directors' fees Auditor's fee Ordinary share dividends (interim) - bad Repairs 10 800 35 000 6 000 29 740 128 000 3 600 36 960 3 880 36 100 60 000 12 000 16 000 29 160 2 498 000 2 498 000 Financial Reporting and Analysis 4. . . Additional Information 1 The provision for bad debts must be increased by R1 BAO. 2. Trading inventory according to stocktaking on 30 June 20.15 amounted to R96000 3 Capital repayments totalling R24 000 are payable on the unsecured loan from Mac Bank in the next financial year. Depreciation must be provided for as follows: on vehicles at 20% on cost on equipment at 28% on cost 5. A dividend of 20% of the investment value has been declared by Vac (Pty) Ltd. The dividend has not yet been received 6. The authorised share capital consists of 500 000 ordinary shares. Note: On 01 July 20.14, the company increased the ordinary share capital by issuing 100 000 shares at R1 each 7. A non-distributable asset replacement reserve of R100 000 must be created & Debentures consist of 20000 13% debentures of R10 each, issued on 01 July 20.13 and redeemable on 30 June 20.18. The debentures are secured by a first mortgage bond over land. Provision must be made for the current year's interest 9. The company tax for the year amounted to R62 400. 10. The directors declared a final dividend of 8 cents per share
