REQUIRED

Use the information provided in below to answer the following questions for the financial year ended $31$ December $2023.$

Note:

$$ Answers to the ratios must be expressed to two decimal places.

$1.$ Comment on the management of debtors and creditors after calculating the relevant ratios.

$2.$ Determine the percentage of the profit after tax that has been retained by the company.

$3.$ Calculate the return on capital employed and comment on your answer.

$4.$ Would prospective lenders be concerned about the relative proportion of borrowed capital and own capital? Motivate your answer by calculating the relevant ratio.

$5.$ Calculate the ratio that measures the efficiency with which the non$-$current and current assets of company were managed.

$6.$ Comment on the ability of the company to settle its short$-$term debts under distress conditions. Use a relevant ratio to motivate your answer.

INFORMATION

The following information was obtained from the financial records of Fiona Limited:INFORMATION

The following information was obtained from the financial records of Fiona

Limited:

Additional information

All purchases and sales of inventories are on credit.

Depreciation for the year ended $31$ December $2023$ amounted to $R500000.$

Interim dividends paid out during the financial year ended $31$ December $2023$ amounted to R$423800.$

Credit terms to debtors are $30$ days and credit terms from suppliers are $60$ days.