Question 4 4.1 Bomvu Ltd presents you with the following extract from their books for the year ended 30 June 2022 Statement of financial performance for the year ended 30 June 2022 Sales Less cost of sales Opening inventory Purchases Closing inventory Gross profit Less operating expenses Earnings before interest and taxes Less interest expense Earnings before tax Less tax (28%) Earnings after tax Net profit distributed as follows: Dividends to ordinary shareholders Retained earnings Non-current assets Statement of financial position as at 30 June 2022 56 348 819 Shareholder's interest Ordinary shares Retained earnings 281 250 Long-term debt 993 750 Current liabilities 696 831 Accounts payable 58 320 650 Equity and liabilities Current assets Cash Account receivable Inventory Total assets 62 981 875 17 598 846 (991 946) [24 marks] 46 940 625 17 588 775 29 351 850 (8 881 569) 20 470 281 (87 500) 20 382 781 (5 707 179) 14 675 603 3 378 753 11 296 849 14 675 602 51 559 252 5 431 589 772 934 556 875 58 320 650 HFMN 330-1-JUL-DEC2022-FA1-GT-V3-13072 6/7 Additional information Number of ordinary shares issued Current market price per share Industrial averages Ratio EPS DPS P/E Debt ratio Debt-equity ratio Times interest ratio Required: 82 494 804 @ 1 000cents each 4 550 cents Industrial average 192 cents 86 cents 13 13% 26% 29 Calculate the basic debt and securities market ratios of a firm based on the above financial statements. Clearly show the formula you used as well as your calculations. (24 Marks) TOTAL: 100 MARKS