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Question 2 ( 2 0 Marks ) RATIO ANALYSIS The following information was extracted from the records of FLAMBOYANT WHOLESALERS for the year ended 2

Question 2
(20 Marks)
RATIO ANALYSIS
The following information was extracted from the records of FLAMBOYANT WHOLESALERS for the year ended 29 February 2024.
Information :
Extract
\table[[\table[[Flamboyant Wholesalers],[Statement of comprehensive Income for the year ended 29 February 2024.]]],[Sales [ all credit ],300000],[Less : Cost of sales,(180000)],[Gross Profit,120000],[Add : Operating Income,30000],[Gross Income,150000],[Less : Operating Expenses,(50000)],[Operating Profit,100000],[Less : Interest Expenses,(20000)],[Net Profit for the year,80000]]
Extract
NB: Inventory on 01 March 2023 was R90000.
Required :
Calculate the following ratios.
NB : Where applicable, round off your answers to two decimal places.
2.1. Gross margin
(2 marks)
2.2. Inventory turnover(Use average Inventory)
(3 marks )
2.3. Debtors collection period
(3 marks )
2.4. Return on assets
(3 marks )
2.5. Total Debt to equity
(3 marks )
2.6. Current ratio
(3 marks )
2.7. Return on own capital
(3 marks)
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