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Hi There can you please help me with this question? 13 The following information from Safaricom (Pty) Ltd standardised statement of financial position and statement

Hi There can you please help me with this question?

13

The following information from Safaricom (Pty) Ltd standardised statement of financial position and statement of comprehensive income are provided to you.

Assets 2021
Property, plant and equipment (PPE) at cost price 320 000
Accumulated depreciation (239 000)
PPE at carrying value 81 000
Goodwill 60 000
Investment in shares 8 000
Non-current assets 149 000
Inventories 43 000
Trade receivables 32 000
Cash and cash equivalents 24 000
Current assets 99 000
Total Assets 248 000

Equity and liabilities
Share capital 100 000
Reserves 10 000
Retained earnings 11 200
Ordinary shareholders equity 121 200
Preference shares 30 000
Shareholders equity 151 200
Non-controlling interest 22 000
Total equity 173 200
Long-term debentures 30 000
Long-term loan 4 000
Non-current liabilities 34 000
Trade payables 20 000
Other payables 16 800
Tax payable 4 000
Current liabilities 40 800
Total equity and liabilities 248 000

Statement of comprehensive income 2021
Turnover 274 000
Cost of sales and services rendered (207 500)
Gross profit 66 500
Operating expenses (26 500)
Operating income 1 500
Operating profit 41 500
Investment income 4 000
Finance cost (6 000)
Profit before tax 39 500
Tax (16 700)
Profit after tax 22 800
Non-controlling interest (1 000)
Preference share dividends (2 400)
Attributable earnings 19 400
Ordinary dividends (3 600)
Retained earnings (for the year) 15 800

Additional information:

  • Purchases on credit for the year amount to R80 000
  • Lease payments of R10 000 were made during the year.
  • The company has 10 000 ordinary shares in issue.
  • The market price per share amounts to R10.
  • DO NOT USE AVERAGES IN THIS QUESTION

As the Finance and Marketing Manager you have been tasked with reviewing the performance of the business by CALCULATING for the year ended 31 December 2022 the following ratios.

13. 1 Profit margins ratios:

a. Gross Profit margin (1)

b. Operating profit margin (1)

c. Earnings before interest and tax margin (1)

d. Net Profit margin (1)

13.2 Liquidity ratios

a. Current ratio (2)

b. Quick ratio (2)

13.3 Solvency ratios

a. Debt-to-asset (2)

b. Debt-to-equity (2)

c. Financial leverage (2)

13.4 Investment Ratios

a. Earnings per share (2)

b. Dividend per share (2)

c. Price earnings ratio (2)

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