REQUIRED

Use the information provided below to answer the following questions.

$4\mathrm{.}1$ Caloulate the ratos for $2023$ that reflect each of the following. Note: Use fhe formulas provided in the

formula sheet only $($fhat appear after QUESTION $5).$ Arswers to fhe rabios must be expressed to two

decimsl places.

$4\mathrm{.}1\mathrm{.}1$ A measure of prufitability by comparing the net income to fre sales of the compary.

$(2$ Marks$)$

$4\mathrm{.}1\mathrm{.}2$ The amount of jime it takes for fhe cients to settie their debts.

$4\mathrm{.}1\mathrm{.}3$ The amourt of jime it takes for fhe company to pay for its credit purchases.

$4\mathrm{.}1\mathrm{.}4$ A measure of the abilty of fe compary to generate profts from its shareholders

irvestments in the cumpary.

$4\mathrm{.}1\mathrm{.}5$ A comparison of fe company's short$-$berm assets to is shortterm liabififes to establish

whethes the company wil be able to pay its immediate debts.

$4\mathrm{.}1\mathrm{.}6$ The perterlage of the company's long term debt to is shareholder's equity.

$4\mathrm{.}2$ Refer to your answers in question $4\mathrm{.}1$ and comment on the following:

$4\mathrm{.}2\mathrm{.}1$ Liquidty of the companty.

$4\mathrm{.}2\mathrm{.}2$ Management of dettors and credtors.

$4\mathrm{.}2\mathrm{.}3$ Return eamed by the shareholders on their investments in the company.

INFORMATION

Exoerpts of the firancial data of Scorpio Limted for $2023$ are as follows:

Addtional information

All purchases and sales of imentories are on credi.

Imentories on $31$ December $2022$ amounted to R$2000000.$

Credit terms to debtors are $30$ days.

Credit terms granted by suppliers are $90$ days.