Question 4 (20 Marks) Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year ended 31 December 2021. INFORMATION The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021. ROLEX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 R Sales 4140 000 Cost of sales (2 020 000) Gross profit 2 120 000 Selling and administrative expenses (840 000) Operating profit 1 280 000 Interest expense (80 000) Profit before tax 1 200 000 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS 2021 (R) 2020 (R) Non-current assets 3 740 000 2 940 000 Property, plant and equipment 3440 000 2 940 000 Investments 300 000 0 Current assets 1 080 000 900 000 Inventories 480 000 500 000 Accounts receivable 510 000 320 000 Cash and cash equivalents 90 000 80 000 Total assets 4 820 000 3 840 000 EQUITY AND LIABILITIES Equity 3 120 000 2 600 000 Ordinary share capital 2 000 000 2 000 000 Retained earnings 1 120 000 600 000 The total dividends for the year ended 31 December 2021 amounted to R360 000 : The issued share capital consisted of 100 000 ordinary shares. The market price of the shares on 31 December 2021 was R35. Question 5 Use the information provided in QUESTION 4 to answer the following questions. 5.1 Calculate the following ratios for 2021 only. Express the answers to two decimal places. Inventory tumover 5.1.1 (2 marks) (2 marks) (2 marks) 5.1.2 Creditors payment period 5.1.3 Return on equity 5.1.4 Debt to assets 5.1.5 Price/Earnings ratio 5.1.6 Acid test ratio (2 marks) (2 marks) (2 marks) 5.1.7 Dividend yield (2 marks) 5.2 5.2.1 Comment briefly but meaningfully on the following ratios (comparative figures are provided in brackets): Gross margin (2021: 51.21%: 2020: 60.45%) Current ratio (2021: 1.20:1, 2020: 1.07:1) (2 marks) 5.2.2 (2 marks) 5.2.3 Return on assets (2021: 25.56%, 2020:30.42%) (2 marks)