QUESTION ONE

$[25]$

The extracts of the financial statements of TBN Limited for $2023$ are provided below:

Extract of the Statement of Comprehensive Income for the year ended $31$ December $2023$

$R$

$\backslash$table$[[$Sales $($credit$),988000],[$Less cost of sales,$400000],[$Gross profit,$560000],[$Less Operating expenses,$160000],[$Operating profit,$400000],[$Less interest expense,$70000],[$Profit before tax,$330000],[$Profit after tax,$280000]]$

Extract of Statement of Financial Position as at $31$ December $2023$

$\backslash$table$[[$Non$-$current assets,$1140000],[$Inventories$,266000],[$Debtors$,300000],[$Bank$,220000],[$Total assets,$1926000],[,],[$Ordinary share capital,$1000000],[$Retained earnings,$482000],[$Non$-$current liabilities,$240000],[$Creditors$,215000],[$Total liabilities,$1926000]]$

Required:

Calculate the following ratios for $2023$: $($Where applicable, answers must be rounded off to two decimal places.$)$

$1\mathrm{.}1$ Profit margin

$1\mathrm{.}2$ Interest cover

$(4)$

$1\mathrm{.}3$ Debtors collection period

$1\mathrm{.}4$ Current ratio

$1\mathrm{.}5$ Acid test ratio

$1\mathrm{.}6$ Return on total assets

$(2)$

$1\mathrm{.}7$ Inventory turnover $($Inventory $1$ January $2021$: R$204000)$

$(2)$

$1\mathrm{.}8$ Comment on the acid test ratio

$(2)$