Question 5

QUESTION FIVE Impi Ltd's Financial Statements for 2018 and 2019 appear as follows: R R Assets 2018 2019 Non-Current Assets 6 000 000 7 200 000 Inventory 205 000 330 000 Receivables 320 000 415 000 Cash 120 000 420 000 6 645 000 8 365 000 Equity and Liabilities Share Capital {R2 shares) 4 000 000 4 400 000 Share Premium 300 000 420 000 Retained Income 600 000 740 000 Long term Debt 1 100 000 2 100 000 Payables 645 000 705 000 6 645 000 6 365 000 R Sales 1 200 000 Cost of sales 600 000 Depreciation 60 000 Interest expense 40 000 Net Income before Tax 500 000 Tax (30%) 150 000 Dividends 210 000 Retained Income 140 000 a. Shares are currently trading at F4260 per share. b. The new shares were issued at the beginning of the year. Calculate the: 5.1 Current ratio tor 2019 and comment. The ratio tor 2016 was 1,6521. 5.2 Dividend yield for 2019 and explain the signicance of your answer. 5.3 Number 01 new shares issued. 5.4 Premium per share. 5.5 Price Earnings (PE) ratio for 201 Q and explain the signicance of your answer. 5.6 Market to book ratio and state the significance of this ratio. [20] (4) (5) {2) (2} (4} (3}