REQUIRED 4.1 Calculate the following ratios for 2022 (expressed to two decimal places). Note: Use the formulas provided in the formula sheet only (that appear after QUESTION 5). 4.1.1 Gross profit margin (2 marks) 4.1.2 Net profit margin (2 marks) 4.1.3 Inventory turnover (2 marks) 4.1.4 Current ratio (2 marks) 4.1.5 Acid test ratio (2 marks) 4.1.6 Debt-equity ratio (2 marks) 4.1.7 Dividend yield (2 marks) 4.2 Comment on the following ratios: 2022 2021 4.2.1 Debt to asset ratio 27.26% 40.34% (2 marks) 4.2.2 Debtors collection period 36.87 days 25.62 days (2 marks) 4.2.3 Return on equity 11.67% 14.25% (2 marks) INFORMATION Extracts of the financial statements of Spire Limited for 2022 are given below. SPIRE LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 R Sales 2 970 000 Cost of sales 1 980 000 Operating profit 363 000 Interest expense 33 000 Profit before tax 330 000 Company tax 99 000 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Non-current assets 2 029 000 Inventories 383 000 Accounts receivable 300 000 Cash 10 000 Ordinary share capital 1 500 000 Retained earnings 480 000 Non-current liabilities 495 000 Accounts payable 200 000 Bank overdraft 47 000 Additional information Inventories amounted to R301 000 on 31 December 2021. Dividends paid during 2022 amounted to R187 500. The authorised share capital consisted of 1 000 000 ordinary shares of which 750 000 were issued. The market price of the share was R3 on 31 December 2022. Credit terms to debtors are 30 days.