Question 4

QUESTION FOUR [20] REQUIRED: Calculate and comment on the following ratios (where applicable round off answers to two decimal places): 4.1.1 Gross margin 4.1.2 Current ratio 4.1.3 Acid-test ratio 4.1.4 Debtors collection period 4.1.5 Inventory turnover 4.1.6 Return on assets INFORMATION: Caht Enterprises Extract from the Statement of Comprehensive Income for the year ended 31 March 2019 Sales (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax 610 000 390 000 170 000 17 000 153 000 110 000 Extract of the Statement of Financial Position as at 31 March 2019 R 700 000 340 000 Assets Non-current assets Current assets Inventory Debtors Bank 70 000 150 000 120 000 1 040 000 REGENT BUSINESS SCHOOL (RBS) - January 2020 MASTER OF BUSINESS ADMINISTRATION - ACADEMIC AND ASSESSMENT CALENDAR DISTANCE Equity and Liabilities Owners' equity 600 000 Non-current liabilities Current liabilities 300 000 140 000 1 040 000