Mthembu Limited statement of profit or loss and other comprehensive income for the period ended 31 December 20x2.

Mthembu Limited statement of financial position as at 31 December 20x2

Mthembu Limited has 5 million authorized shares. They have issued 1 000 000 shares.

Required:

Calculate the following ratios for year ended 31 December 20x2:

3.1 Gross profit margin. (5)

3.2 Return on equity (ROE). (5)

3.3 Asset turnover. (5)

3.4 Current ratio. (5)

3.5 Inventory turnover ratio. (5)

Revenue Cost of sales Gross profit Operating costs Distribution costs Administrative expenses Other expenses Net operating profit/(loss) Interest and other income Earnings before interest and tax (EBIT) Interest expense Profit before tax Income tax expense Net profit. 20x2 R'000 6 633 (3 655) 2 978 (1 506) (650) (205) (156) 461 55 516 (335) 181 (54) 127 20x1 R'000 5 960 (3 125) 2 835 (1 206) (539) (246) (78) 766 36 802 (265) 537 (161) 376