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Question 2 - Accounting And Finance REQUIRED Use the relevant information provided in the case study to answer the following questions ( with ratios expressed
Question Accounting And Finance
REQUIRED
Use the relevant information provided in the case study to answer the following questions with ratios expressed to two decimal places in respect of
Comment on the liquidity of the company. Calculate TWO appropriate ratios tosupport your answer.
Comment on the efficiency of the company regarding the collections from credit sales. Motivate your answer by using a suitable ratio.
Did the company make good use of the credit period allowed by the suppliers? Motivate your answer with a relevant ratio and offer a recommendation, if necessary.
Comment on the return that the company made on its own and borrowed capital. Support your answer with the use of a relevant ratio.
Calculate the price earnings ratio.
Was any provision made by the company to fund its future growth? Motivate your answerby using an appropriate ratio.
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