Statement of Financial Position: Assets 2017 Non-Current/Fixed 4 200 000 Inventory 400 000 Receivables Cash 1...

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Statement of Financial Position: Assets 2017 Non-Current/Fixed 4 200 000 Inventory 400 000 Receivables Cash 1 550 000 600 000 6 750 000 2016 3 000 000 600 000 1 200 000 300 000 5 100 000 Equity and Liabilities Share Capital (R2 shares) 4 200 000 4 000 000 Retained Income 600 000 300 000 Long term Debt 250 000 200 000 Payables 1 700 000 600 000 6 750 000 5 100 000 The Statement of Comprehensive Income for the year ended 2017: Sales (10% on credit) 10 200 000 Cost of sales (80% on credit) 4 080 000 Expenses 3 200 000 Net Income after Tax 2 000 000 Dividends 1 700 000 Retained Income 3 000 000 NB: Shares are currently trading at R2, 80 per share. Required: 1.1. 1.2. Calculate the net profit on turnover for 2015. Calculate the current ratio for both years. 1.3. Calculate the acid test ratio for both years (2) (4) (4) 1.4. Accounts Payable Turnover 1.4.1. Calculate the accounts payable period (In days), noting that Newtech Ltd has, after tough negotiations secured a 90-day account with all its creditors. Statement of Financial Position: Assets 2017 Non-Current/Fixed 4 200 000 Inventory 400 000 Receivables Cash 1 550 000 600 000 6 750 000 2016 3 000 000 600 000 1 200 000 300 000 5 100 000 Equity and Liabilities Share Capital (R2 shares) 4 200 000 4 000 000 Retained Income 600 000 300 000 Long term Debt 250 000 200 000 Payables 1 700 000 600 000 6 750 000 5 100 000 The Statement of Comprehensive Income for the year ended 2017: Sales (10% on credit) 10 200 000 Cost of sales (80% on credit) 4 080 000 Expenses 3 200 000 Net Income after Tax 2 000 000 Dividends 1 700 000 Retained Income 3 000 000 NB: Shares are currently trading at R2, 80 per share. Required: 1.1. 1.2. Calculate the net profit on turnover for 2015. Calculate the current ratio for both years. 1.3. Calculate the acid test ratio for both years (2) (4) (4) 1.4. Accounts Payable Turnover 1.4.1. Calculate the accounts payable period (In days), noting that Newtech Ltd has, after tough negotiations secured a 90-day account with all its creditors.