Question 5 The following information relates to Eston Limited: Statements of Comprehensive Income as at:mber: 31 Dece 2021 2020 Sales 35 000 000 30 000 000 Cost of sales (23 000 000) (20 000 000) Gross profit 12 000 000 10 000 000 Operating expenses: (5 100 000) (4 000 000) Distribution costs 2000 000 1 500 000 Administrative expenses 3100 000 2 500 000 Operating profit 6 900 000 6 000 000 Finance costs (400 000) (500 000) Profit before tax 6 500 000 5 500 000 Income tax (1 500 000) (1 500 000) Profit after tax 5 000 000 5 4 000 000 Statements of Financial Position as at 31 December: Assets 2021 2020 Non-current assets 20 000 000 18 000 000 Property, plant and equipment 20 000 000 18 000 000 Current assets: 12 000 000 12 000 000 Inventories 6 000 000 6 6 000 000 Accounts receivable 5 000 000 4 000 000 Cash and cash equivalents 1 1 000 000 2 000 000 Total assets 32 000 000 30 000 000 Owners' equity and liabilities Owners' equity 20 000 000 18 000 000 Ordinary share capital 10 000 000 10 000 000 Retained earnings 10 000 000 8 000 000 Non-current liabilities 4 000 000 6 000 000 Current liabilities 8 000 000 6 000 000 Accounts payable 8 000 000 6 000 000 Total owners' equity and liabilities 32 000 000 30 000 000 Statements of changes in equity as at: 31 December: : 2021 2020 Balance at end of previous year 18 000 000 16 500 000 Profit for the year 5 000 000 4 000 000 Ordinary share dividends (3 000 000) (2 500 000) Balance at end of current year 20 000 000 18 000 000 Additional information All purchases and sales of inventories are on credit. . Eston Limited's ordinary share capital consists of 10 000 000 ordinary shares. The market price of the shares was R5.60 on 31 December 2020 and R7.50 on 31 December 2021. Required: Calculate the following ratios for Eston Limited for 2021 and 2020 and comment on your answers: 5.1 Gross margin 5.2 Debtors collection period 5.3 Return on equity 5.4 Dividend per share 5.5 Debt to equity Guidelines: All answers must be typed out and workings must be showing