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REQUIRED Use the information provided below to answer the following questions. 4 . 1 Calculate the following ratios for 2 0 2 3 only. Note:

REQUIRED
Use the information provided below to answer the following questions.
4.1 Calculate the following ratios for 2023 only. Note: Use the formulas provided in the formula sheet
only (that appear after QUESTION 5). Answers to the ratios must be expressed to two decimal
places
4.1.1 Inventory turnover
(2 marks)
4.1.2 Net profit margin
(2 marks)
4.1.3 Debt-equity
(2 marks)
4.1.4 Earnings per share
4.1.5 Finance cost coverage
4.1.6 Average collection period
4.2 Will the company be able to pay its short-term debts if business conditions are
unfavourable? Motivate your answer by using an appropriate ratio.
4.3 Will the shareholders of the company be satisfied with the return on their investments?
Support your answer with the use of an appropriate ratio.
INFORMATION
The extracts of the financial statements of Fabrice Limited for 2022 and 2023 are provided below.
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
Additional information
All purchases and sales of inventories are on credit.
The number of ordinary shares in issue during 2023 was 500000.
Shareholders earned a return of 9.71% on their investments during 2022.
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