Postgraduates diploma in management question

on Assets 7. Typical Examination Type Questions Bujumbura Plastics are a manufacturing business who make containers domestic use and sell directly to end users (households). Balance Sheets for 2017 and 2016 financial years are below. Assets 2017 2016 Non-Current Assets 6 000 000 5 800 000 Inventory 300 000 200 000 Receivables 400 000 320 000 Cash 500 000 300 000 7 200 000 6.620.000 Business School Financial Management Equity and Liabilities 4 000 000 Share Capital (R2 shares) Retained Inome Long term Debt 1.2. Calculate their debt equity ratio for 2017. And comment on where the funds 1.3. Calculate the earnings per share and dividends per share and comment on their Postgraduate Diploma in Management 3 500 000 500 000 400 000 2 000 000 1 800 000 700 000 920 000 Payables 7 200 000 6620 000 Their abbreviated Income Statement for the year end 2017: Sales (Credit sales is 60%) 2 300 000 Cost of sales 1 100 000 Depreciation 100 000 Interest expense 240 000 Tax (30%) 130 000 Net Income after Tax 300 000 Dividends 200 000 Retained Income 100 000 Required 1.1. Calculate the acid test ratio for 2017 (the ratio for last year was 0,65:1) and comment generated have been utilised in 2017. retention of funds. Financial Management Postgraduate Diploma in Management 1.4. Calculate the Debtors collection period (use average figures) and comment on your findings, noting that debtors are given 60 days to pay their accounts. (Note: Debtor's collection in the previous year was 66 days). Can you offer suggestions to the collection team in this regard? 1.5. Calculate the inventory turnover (use average inventory) and explain how this ratio can be used to explain/improve operating efficiencies. Is this ratio healthy, noting the type of industry that Bujumbura operate in? 1.6. Calculate the Return on Equity (using the DuPont Identity). If return on equity was 14% last year. Will shareholders be happy with the current return? Why or why not