Question 3 14 marks Statement of Financial Performance of Gama (Pty) Ltd for the year ended 30 September 2019 N$ Sales 200 000.00 Cost of Sales 120 000.00 Gross Profit 80 000.00 60 000.00 Operating Expenses Net Profit before Tax 20 000.00 Additional Information i) N$ 2 000.00 Interest paid Taxation rate ii) 25% iii) N$ 16 000.00 iv) Opening Inventory 50% of the sales are sold on credit All purchases are on credit Number of ordinary shares in issue v) vi) 25 000 shares N$2,510 vii) viii) Market price per share One year has 365 days 7 TUTORIAL LETTER BUSINESS FINANCE SEMESTER 2/2021 BBF6125 Statement of Financial Position of Gama (Pty) Ltd as at 30 September 2019 Capital Employed N$ Share Capital 100 000.00 Retained Earnings 40 000.00 Long Term Loan 20 000.00 160 000.00 Employment of Capital Fixed Assets 100 000.00 Current Assets 100 000.00 Inventory 24 000.00 Trade Receivables 60 000.00 Bank 16 000.00 Current Liabilities 40 000.00 Trade payables 40 000.00 Net working Capital 60 000.00 160 000.00 Make use of the Financial Statements and additional information provide above to calculate the following ratios: a) Earnings Per Share (EPS) b) Quick ratio c) Interest cover (times interest earned) d) Inventory turnover e) Return on Equity