QUESTION 1 Esther G. started her business called EG Fun & Games at the beginning of 2019. At the end of her second year in business, Esther wants to compare the 2019 and 2020 results. She provides you with the following financial information: Ratios at the end of December 2019 Gross profit margin 35% Net profit margin 11% Return on capital employed (ROCE) 13% Current ratio 1.4:1 As at 31 December 2020 Revenue Cost of sales Total running costs Current assets Current liabilities Total capital employed R 4 800 000 2 880 000 1 536 000 660 000 600 000 2 560 000 a Required: Showing the formulae, calculate the following ratios for the year 2020. i. Gross profit margin. ii. Net profit margin. iii. Return on capital employed (ROCE). iv. Current ratio b Tabulate the 2019 and your calculated 2020 ratios. Comment on the changes in the ratios from 2019 to 2020. In your commentary, provide two plausible reasons that could explain the trends observed. Your aunt Nokhona completed her dentistry studies at Sefako Makgatho Health Sciences University not long ago. She has been operating her dental practice for six months now. She knows you are studying financial management and she asks you to help her identify possible items of monetary and nonmonetary information she should include in her monthly report. In assisting her, she needs to know items to include and examples so that she gets a better understanding. Note: All answers must be typed out and workings must be shown