QUESTION 3 REQUIRED Use the information provided below to prepare the Cash Flow Statement of Tempest Limited for the year ended 31 December 2015. INFORMATION TEMPEST LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales Cost of sales Gross profe Operating expenses Selling and administrative expenses Depreciation Operating profe Interest expense Profs before tax Income tax Profit after tax 2200000 (3 300 000 900000 1570 000) 1420 000 (150 000 330 000 (90 000 240 000 80000 160000 ement of Financial Position as at 31 December cument assets Plant and equipment Accumulated depreciation Investments ment assets Inventories Accounts receivable Cash and cash equivalents Total assets uty and liabilities 2019 2018 1330000 100000 2400006 1 150 000 70000 2000000 (1 000 000 80000 $10000 30000 430000 410 000 380000 110 000 100000 70000 2230000 1910000 lauity 1220000 1 120 000 Ordinary share capital (155 000 shares) 620000 Retained earnings Non-current liabilities Current liabilities Accounts payable 600 000 720000 630000 500 000 670000 290000 120 000 240000 54 000 40 000 50 000 Dividends payable Income tax payable Total equity and liabilities 10000 16000 2230000 1910000 Note: Dividends paid and recommended during 2019 amounted to R60 000 All purchases and sales of inventories are on credit QUESTION 4 (20) Ad recommended during 2019 amounted to R60000. All purchases and sales of inventories are on credit QUESTION 4 REQUIRED 41 (201 Use the information from Question 3 to calculate the following ratios for 2019 answers expressed to two decimal places) 4.1.1 Inventory turnover 4.1.2 Interest cover 4.1.3 Net profit margin 4.1.4 Return on equity (2) 66666668 4.1.5 Earnings per share 4.1.6 Dividends per share 4.1.7 Acid test ratio 4.1.8 Debt to assets 4.2 Refer to the ratios calculated in question 4.1 and answer the following questions 4.2.1 Will the shareholders be satisfied with their return on investment? Explain. 4.2.2 Will the company be able to pay its short-term debts if inventories are not sold Why? (2) 88 (2)