Please help from question 2.1.3 - 2.3

QUESTION 2 strate the relations betweelity of 110 FINANCE (20) (30) INFORMATION Puff Adder Distributors Income Statements for the year ended 31 December 2019 and 2018 Sales (all credit) Cost of sales (all credit) Gross profit Operating expenses: Selling, general and administrative Other expenses Operating profit Other income: Interest income Profit before interest Interest expense Profit before tax Tax 2019 2018 2167500 1719940 (1351539) (1181761) 815961 537279 (206031) (167969) (120649) (10747) 185382) (G0502) 609930 369310 11458 9637 11458 9637 621388 378947 (61372) (72515) 560016 306432 (244422) (182707 315594 123725 Net profit after tax MANCOSA: HIGHER CERTIFICATEN SUOMAGEMENT Puff Adder Distributors Balance Sheets the year ended 31 December 2019 and 2018 2011 Assets Non-current assets Current assets: Inventories Accounts receivable Cash and cash equivalents Total assets Owners' equity and liabilities Owners' equity Non-current liabilities Current liabilities Accounts payable Other current liabilities 85980 429780 5629 63350 418852 Total owners' equity and liabilities mation provided above to calculate the following ratios and interpret them over the sideration the itional information provided on each ratio. Sh Current inities Accounts payable Other current liabilities Total owners' equity and liabilities 1414631 55483 8598 429780 119541 56291 63250 4152 141 2.1 Use the information provided above to calculate the following ratios and interpret them over the two year period (2018-2019) taking into consideration the additional information provided on each sati. Show your workings and where applicable, round off answers to two decimal places. 2.1.1 Profit margin 2.1.2 Acid test ratio 2.1.3 Inventory turnover (Inventory for 2017: 69 870) 2.1.4 Debtors collection period Current credit terms to debtors are 30 days) 14) 2.1.5 Return on assets (Current rate on fixed deposits at banks-725 Current rate at banks for business loans 11%, the current inflation rate 5.6%) 14 2.2 Use the following information to calculate the economic order quantity Rich Distance Distributors purchases 750 snake repellers at R340 each per annum. The snake repellers are sold at R480 each at a steady rate during the year. The cost of placing a single order amounts to R20. Inventory holding cost amounts to R2.50 per unit 2.3 Use the following information to calculate the cost of not accepting a discount: Reptile Wholesaler's normal credit terms to Rich Distance Distributors are 30 days but is prepared to allow a 4.5% rebate if Puff Adder Distributors pays the account within 15 days. Calculate the cost to Puff Adder Distributors of not accepting the discount PROGRAMME HANDBOOK: JANUARY 2020 INTAKE QUESTION 2 strate the relations betweelity of 110 FINANCE (20) (30) INFORMATION Puff Adder Distributors Income Statements for the year ended 31 December 2019 and 2018 Sales (all credit) Cost of sales (all credit) Gross profit Operating expenses: Selling, general and administrative Other expenses Operating profit Other income: Interest income Profit before interest Interest expense Profit before tax Tax 2019 2018 2167500 1719940 (1351539) (1181761) 815961 537279 (206031) (167969) (120649) (10747) 185382) (G0502) 609930 369310 11458 9637 11458 9637 621388 378947 (61372) (72515) 560016 306432 (244422) (182707 315594 123725 Net profit after tax MANCOSA: HIGHER CERTIFICATEN SUOMAGEMENT Puff Adder Distributors Balance Sheets the year ended 31 December 2019 and 2018 2011 Assets Non-current assets Current assets: Inventories Accounts receivable Cash and cash equivalents Total assets Owners' equity and liabilities Owners' equity Non-current liabilities Current liabilities Accounts payable Other current liabilities 85980 429780 5629 63350 418852 Total owners' equity and liabilities mation provided above to calculate the following ratios and interpret them over the sideration the itional information provided on each ratio. Sh Current inities Accounts payable Other current liabilities Total owners' equity and liabilities 1414631 55483 8598 429780 119541 56291 63250 4152 141 2.1 Use the information provided above to calculate the following ratios and interpret them over the two year period (2018-2019) taking into consideration the additional information provided on each sati. Show your workings and where applicable, round off answers to two decimal places. 2.1.1 Profit margin 2.1.2 Acid test ratio 2.1.3 Inventory turnover (Inventory for 2017: 69 870) 2.1.4 Debtors collection period Current credit terms to debtors are 30 days) 14) 2.1.5 Return on assets (Current rate on fixed deposits at banks-725 Current rate at banks for business loans 11%, the current inflation rate 5.6%) 14 2.2 Use the following information to calculate the economic order quantity Rich Distance Distributors purchases 750 snake repellers at R340 each per annum. The snake repellers are sold at R480 each at a steady rate during the year. The cost of placing a single order amounts to R20. Inventory holding cost amounts to R2.50 per unit 2.3 Use the following information to calculate the cost of not accepting a discount: Reptile Wholesaler's normal credit terms to Rich Distance Distributors are 30 days but is prepared to allow a 4.5% rebate if Puff Adder Distributors pays the account within 15 days. Calculate the cost to Puff Adder Distributors of not accepting the discount PROGRAMME HANDBOOK: JANUARY 2020 INTAKE