MIA28 160 Marks) ON preparing for a board meeting and the Financial Manager provided you with the audited financial statements of RPP (Pty) Ltd for the year ended February 2020, atement of comprehensive income for the period ending 28 February 2020 Feb 18 Feb 10 Feb 20 R'000 R'000 R'000 22 590 650 23 870 500 25 800 125 revenue) Sales 16 500 250 17 680 400 18 250 800 profit 6 090 400 6 100 100 7 549 325 25 4 200 500 4 500 600 4 700 450 2 848 875 1 889 900 1 689 500 s before interest and T) (Operating profit) 190 566 260 768 290 780 efore tax (PBT) 1 699 334 1 428 732 2 558 095 716 267 475 814 400 045 ter tax 1 223 520 1 028 687 1 841 828 1 500 000 1 650 000 1 650 000 of ordinary shares per share (EPS) 0.82 0.62 1.12 is 250 000 250 000 250 000 Statement of financial Position as at 28 February 2020 Feb-18 Feb-19 R'000 R'000 Feb-20 R'000 9 851 230 10 151 230 ent assets 10 130 900 7 850 450 7 650 450 7 450 450 plant, and equipment 1 350 780 1 650 780 icles 1 780 450 650 000 850 000 900 000 Fittings 4 103 590 5 962 277 7 774 435 ssets: 4 2 260 308 2179775 Inventory Trade receivables Cash And bank 405471 3713532 1 870 250 212 213 Total Assets 13 954 820 16 113 507 17 306 394 5 534 320 6 613 007 Equity and Liabilities Equity Ordinary shares (1500000 shares Rt each) 3 000 000 3300 000 Retained income 2534 320 3313 007 Non-Current Liabilities: 5 850 000 6 650 000 5 200 000 6 000 000 Long term loan Shareholders loan account 650 000 650 000 650.000 Current Liabilities: Trade Creditors 2570 500 2850 500 Total Equity and Liabilities 13 954 820 16 113 507 equired: Discuss the liquidity of the company. Support your answer with the necessary calculations. Include the cash conversion cycle as one of the calculations arks will be awarded as follows: Calculations 18. Observations 6. Interpretation 2 nclusion 4 = total 40) Discuss the solvency of the company. Support your answer with the necessary calculations. arks will be awarded as follows: calculations 9, observations 3. interpretation 6. cand total 20) MIA28 160 Marks) ON preparing for a board meeting and the Financial Manager provided you with the audited financial statements of RPP (Pty) Ltd for the year ended February 2020, atement of comprehensive income for the period ending 28 February 2020 Feb 18 Feb 10 Feb 20 R'000 R'000 R'000 22 590 650 23 870 500 25 800 125 revenue) Sales 16 500 250 17 680 400 18 250 800 profit 6 090 400 6 100 100 7 549 325 25 4 200 500 4 500 600 4 700 450 2 848 875 1 889 900 1 689 500 s before interest and T) (Operating profit) 190 566 260 768 290 780 efore tax (PBT) 1 699 334 1 428 732 2 558 095 716 267 475 814 400 045 ter tax 1 223 520 1 028 687 1 841 828 1 500 000 1 650 000 1 650 000 of ordinary shares per share (EPS) 0.82 0.62 1.12 is 250 000 250 000 250 000 Statement of financial Position as at 28 February 2020 Feb-18 Feb-19 R'000 R'000 Feb-20 R'000 9 851 230 10 151 230 ent assets 10 130 900 7 850 450 7 650 450 7 450 450 plant, and equipment 1 350 780 1 650 780 icles 1 780 450 650 000 850 000 900 000 Fittings 4 103 590 5 962 277 7 774 435 ssets: 4 2 260 308 2179775 Inventory Trade receivables Cash And bank 405471 3713532 1 870 250 212 213 Total Assets 13 954 820 16 113 507 17 306 394 5 534 320 6 613 007 Equity and Liabilities Equity Ordinary shares (1500000 shares Rt each) 3 000 000 3300 000 Retained income 2534 320 3313 007 Non-Current Liabilities: 5 850 000 6 650 000 5 200 000 6 000 000 Long term loan Shareholders loan account 650 000 650 000 650.000 Current Liabilities: Trade Creditors 2570 500 2850 500 Total Equity and Liabilities 13 954 820 16 113 507 equired: Discuss the liquidity of the company. Support your answer with the necessary calculations. Include the cash conversion cycle as one of the calculations arks will be awarded as follows: Calculations 18. Observations 6. Interpretation 2 nclusion 4 = total 40) Discuss the solvency of the company. Support your answer with the necessary calculations. arks will be awarded as follows: calculations 9, observations 3. interpretation 6. cand total 20)