Question 4.2

Statement of Comprehensive Income for the year ended 31 December 2021: R Revenue (60 % on credit) 18 000 Cost of revenue (50 % on credit) 9 000 Depreciation 1400 Profit before Interest and Tax 7 600 Interest pald 1 200 Taxable profit 6 400 Taxes (30%) 2 089 Net profit after tax 4311 Dividends 1 352 Addition to retained profit 2 959 statement of Financial Position as at 31 December 2021: 2020 R Non-current assets Plant and equipment 16 968 Current assets Stock 5 740 Debtors 2230 Cash 808 8 778 Total assets 25 746 28 376 Owners' equity 3 600 3 600 Share capital 12 859 15 818 16 459 19 418 Non-current liabilities Long term loan 6 800 6 300 Short term loan 750 800 7 550 7 100 Current Ilabilities Creditors 1737 1858 Total equity and liabilities 25 746 28 376 Required: 4.1. Calculate and comment on each of the following liquidity ratios for 2020 and 2021: 4.1.1 Current ratio (4) 4.1.2 Acid test ratio (4) Calculate each of the following activity ratios: 4.2.1 Stock turnover rate (4) 4.2.2 Debtor collection period 4.2.3 Creditor payment period (3) Calculate the solvency ratio for 2020 and 2021 Calculate each of the following profitability ratios: 4.4.1 Profitability of the business 4.4.2 Profitability of own capital 4.2 4.3 4.4 2021 R 16 200 8 450 3 232 494 12 176 (3) (3)