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only ( that appear after QUESTION 5 ) . Answers to the ratios must be expressed to two decimal places. 4 . 1 . 1

only (that appear after QUESTION 5). Answers to the ratios must be expressed to two decimal places.
4.1.1 Inventory turnover
4.1.2 Net profit margin
4.1.3 Debt-equity
4.1.4 Earnings per share
(2 marks)
4.1.5 Finance cost coverage
(2 marks)
(2 marks)
(2 marks)
4.1.6 Average collection period
(2 marks)
4.2 Will the company be able to pay its short-term debts if business conditions are
(2 marks)
unfavourable? Motivate your answer by using an appropriate ratio.
(4 marks)
4.3 Will the shareholders of the company be satisfied with the return on their investments? Support your answer with the use of an appropriate ratio.
(4 marks)
INFORMATION
The extracts of the financial statements of Fabrice Limited for 2022 and 2023 are provided below.
\table[[FABRICE LIMITED,R],[STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023,],[,990000],[Sales,600000],[Cost of sales,250000],[Eamings before interest and taxes,30000],[Interest expense,220000],[Profit before tax,59400],[Company tax,]]
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