INFORMATION The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31 December 2021: Sales Cost of sales Depreciation Operating profit Interest expense Company tax for the year Property, plant and equipment (carrying value) Long-term investments Inventories Accounts receivable Prepaid expenses Cash and cash equivalents Ordinary share capital (All shares issued at R10 each) Retained earnings Non-current liabilities Accounts payable Accrued expenses Dividends payable Company tax payable Note: . 31 Dec 2022 R Dividends paid and recommended during 2022 amounted to R300 000. All purchases and sales of inventories are on credit 11 000 000 6 500 000 750 000 1 650 000 450 000 400 000 6 250 000 350 000 2 150 000 1 700 000 200 000 500 000 3 100 000 3 000 000 3 600 000 1 100 000 100 000 200 000 50 000 31 Dec 2021 R Some of the investments were redeemed during the financial year ended 31 December 2022. Debtors are granted credit terms of 30 days. 5 000 000 400 000 050 000 2 1 700 000 50 000 350 000 3 100 000 2 500 000 3350 000 200 000 70 000 250 000 80 000 REQUIRED Use the information provided in QUESTION 4 to answer the following questions: 5.1 Calculate the following ratios (expressed to two decimal places) for 2022 only. Note: Use formulas provided in the formula sheet only (that appear after QUESTION 5). 5.1.1 Gross margin 5.1.2 Dividend per share 5.1.3 Return on assets 5.1.4 Current ratio 5.1.5 Acid test ratio 5.1.6 Debt to equity 5.1.7 Creditor payment period 5.2 Comment on the following ratios: 5.2.1 Inventory turnover 5.22 Debtors collection period 5.2.3 Return on equity 2022 3.10 times 56.41 days 13.11% 2021 6.35 times 29.45 days 18.80% (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks)

INFORNATION The following amouns were obtainad from the Slatement of Comprehensive income for the year ended 31 December 2022 and Stakment of Financial Positon of Alo Limited as at 31 December 2022 and 31 December 2021 : Note: Dividends paid and recommended during 2022 amounted to R300 000. All purchases and sales of inventories are on credit. Seme of the investments were robeemed during the financial year encted 31 Decenber 2022. Debtors are granted eredit tenris of 30 days