Question 5

QUESTION 5 (20 Marks) REQUIRED Calculate the fallowing rafos for 2022 and in each case state whether the rafo for the compary is better or worse than the industy average. Where applicable, express answers to the ratios to two decimal places. The ratios for the industry are provided in brackets. 5.1 Gross proft margin (Industry: 35.43\%) (3 marks) 5.2 Trade payables average number of days (Industry: 65.03 days) (3 marks) 5.3 Retum on capital employed (Industry: 31.49% ) (3 marks) 5.4 Operating profit margin (Industry: 28.42\%) (2 marks) 5.5 Acid lest ratio (Industry: 1.72:1) (3 marks) 5.6 Debt to equity (hdustry: 74.39% ) (3 marks) 5.7 Inventary average number of days (Industry: 69.32 days) (3 marks) INFORMATION Excerpts of fnancial data of Maytair Limited for 2022 are as follows: \begin{tabular}{|l|r|} \hline Statement of Comprehensive Income for the year ended 31 December 2022 \\ \hline & R \\ \hline Sales & 11000000 \\ \hline Cost of sales & 7690000 \\ \hline Operating profflProft before interest and tax & 2410000 \\ \hline Interest expense & 400000 \\ \hline Proft before lax & 2010000 \\ \hline Proft affer tax & 1447200 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Statement of Financial Position as at 31 December 2022 & \\ \hline ASSETS & 8400000 \\ \hline Nan-current assets & 570000 \\ \hline Thventones & 2400000 \\ \hline Trade receivables & 1040000 \\ \hline Cash & 12410000 \\ \hline & \\ \hline EQUITY AND LIABILITIES & 1200 \\ \hline \end{tabular} Additional information Imventaries and Trade payables on 31 December 2021 amounted to R460 000 and R1 000000 respectively. 2. Credt purchases for the year ended 31 December 2022 amounted to R7 800000. 4. The credit terms offered by the suppliers are 60 days