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please assist 3.1.4 Inventory tumover 3.1.5 Average collection period (Use 380 days) 3.1.6 Return on equity (2 marks) (2 marks) 3.2 Refer to your answers
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3.1.4 Inventory tumover 3.1.5 Average collection period (Use 380 days) 3.1.6 Return on equity (2 marks) (2 marks) 3.2 Refer to your answers in question 3.1 above and answer the following questions: (2 marks) (2 marks) unfavourable. 3.2.2 Are the collections from debtors satisfactory? Explain. 3.2.3 As a shareholder would you be satisfied with the return on your investment? Motivate your answer 3.2.4 Suggest TWO (2) ways in which the company can improve its net profit margin. (2 marks) (2 marks) R INFORMATION Rexel Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2019 2 970 000 1980 000 363 000 33 000 330 000 Sales (all credit) Cost of sales Earnings before interest and taxes (EBIT) Interest expense Profit before tax 231 000 Earnings after interest and taxes 3.2.1 Comment on the ability of the company to pay its creditors when business conditions are Extract of Statement of Financial Position as at 31 December 2019 R 2029 500 693 000 Non-current assets Current assets Equity Non-current liabilities Current liabilities 1980 000 495 000 247 500 Note: Inventories amounted to R264 000 on 31 December 2019 and R226 000 on 31 December 2018 Accounts receivable amounted to R300 000 on 31 December 2019. Credit terms to debtors are 30 daysStep by Step Solution
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