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QUESTION 2 STATEMENT OF FINANCIAL POSITION AS AT 3 1 DECEMBER 2 0 2 2 table [ [ , R ( 2 0 Marks
QUESTION STATEMENT OF FINANCIAL POSITION AS AT DECEMBER
table
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REQUIRED
Use the information provided below to calculate the ratios for expressed to two decimal places
that would reflect each of the following:
The profit of the company relative to sales after deducting the cost of sales.
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The ability of the company to profitably utilize its capital, which includes both debt and
equity.
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The proportion of the total assets that are financed by total debt.
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The ability of the company to repay its shortterm debts under distress conditions, on the
assumption that inventories would have no value at all.
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The portion of the company's profit that is allocated to each outstanding ordinary share.
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An indication of the percentage of profit that has been put back into the company.
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Comment on the following ratios that have been calculated for Sapphire Ltd:
Profit margin
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Return on equity
INFORMATION
Excerpts of the financial data of Sapphire Ltd for are as follows:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER
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