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

$\backslash$table$[[\backslash$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 R$90000.$

Required :

Calculate the following ratios.

NB : Where applicable, round off your answers to two decimal places.

$2\mathrm{.}1.$ Gross margin

$(2$ marks$)$

$2\mathrm{.}2.$ Inventory turnover$($Use average Inventory$)$

$(3$ marks $)$

$2\mathrm{.}3.$ Debtors collection period

$(3$ marks $)$

$2\mathrm{.}4.$ Return on assets

$(3$ marks $)$

$2\mathrm{.}5.$ Total Debt to equity

$(3$ marks $)$

$2\mathrm{.}6.$ Current ratio

$(3$ marks $)$

$2\mathrm{.}7.$ Return on own capital

$(3$ marks$)$