QUESTION ONE [25] The following data was extracted from the records of Entern Ltd on 28 February 2021, the end of their financial year. R Share capital (900 000 shares at R2 par value) Retained income Non Current Assets Inventories Receivables Cash/Bank Payables Loans at 15% p.a. Net profit after tax 1 800 000 160 000 1 750 000 220 000 600 000 300 000 730 000 180 000 765 000 Market price of share Dividends per share 270c 65c Required: 1.1 Calculate and comment on the following ratios: 1.1.1. Current ratio (last year 2,33:1) (4) 1.1.2. Acid test ratio (last year 1.58: 1) (4) 1.2. Calculate the Price Earnings (PE) ratio and explain what a low PE ratio could mean. (4) 1.3. Calculate the earnings per share. Will shareholders be happy with this? Why? (4) 1.4. Calculate the market to book ratio and explain the significance of this ratio. (4) 1.5 Calculate and comment on the debt equity ratio. (3) 1.6. Calculate the retained income for the year. (2)