STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE ASSETS 2022 2021 Non-current assets Gross Fixed Assets 791 000 1 202,950 Less Accumulated Depreciation (146 200) (263,160) Net Fixed Assets 644 800 939,790 Current assets Cash 109,000 87,282 Short-term investments 48,600 20,000 Inventories 1 015,200 1,207,360 Trade and other receivables 451,200 632 160 Total current assets 1 624,000 1 946 802 Total assets 2 268,800 2, 886,592 EQUITY AND LIABILITIES Equity Share capital (100 000 ordinary shares) 500 000 500 000 Retained Earnings 910 800 1 097 632 Total equity 1 410 800 1 597 632 Non-current liabilities Long-term loan 400,000 660,000 Total non-current liabilities 400,000 660,000 Current liabilities Trade and other payables 432 000 508,960 Short-term portion of long-term loan 26,000 120,000 Total current liabilities 458 000 628,960 Total liabilities 858,000 1,288,960 Total equity and liabilities 2, 268,800 2,886,592 STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 2021 - 7 - Sales 3 432 000 5 834 400 Cost of sales (1 864 000) (2 980 000) Gross profit 1 568 000 2 854 400 Other operating expenses (458 000) (886,200) Earnings before interest and Tax (EBIT) 1 110 000 1 968 200 Finance costs (102 000) (196 200) Profit before tax (EBT) 1 008 000 1 772 000 Income tax expense (30%) (302 400) (531 600) Net Profit for the year 705 600 1 240 400 Dividends 300 000 600 000 Share price traded at R70 R100 Number of Shares in Issue 100 000 100 000 Required Calculate the financial ratios listed below and explain the effects that any changes in the ratios between 2022 and 2023 can have on the company. Show all formulas and round off all final answers to the nearest whole number. 2.4. Inventory Turnover