QUESTION ONE [25]

Extracts from the financial statements of SGW Limited for the year ended 31 December 2021 are provided below: Extract of the Statement of Comprehensive Income R Sales (Credit) 506500 Cost of sales (250000) Gross profit 256500 Operating expenses (203100) Operating profit 53400 Interest expense (14500) Profit before tax 39100 Tax (11730) Profit after tax 27370 Extract of the Statement of Financial Position R R Non-current assets 300000 Current assets 82000 Trading inventory 50000 Debtors 30000 Bank 2000 382000 Owners' equity 262000 Non-current liabilities 80000 Current liabilities 40000 Creditors 40000 382000 Note: Inventory on 1 January 2021 amounted to R40 000 . Required: Calculate each of the following ratios: (round off answers to two (2)

QUESTION ONE [25] Extracts from the financial statements of SGW Limited for the year ended 31 December 2021 are provided below: Extract of the Statement of Comprehensive Income Extract of the Statement of Financial Position Note: Inventory on 1 January 2021 amounted to R40 000. Required: Calculate each of the following ratios: (round off answers to two (2) decimal places) 1.1 Gross margin (5) 1.2 Debtors collection period 1.3 Inventory turnover (5) 1.4 Acid-test ratio (5) 1.5 Interest coverage