The condensed and other financial information for ICR Limited appear below. ICR Limited Statement of Comprehensive Income for the year ended 31 December 2018.

R Sales 803 750 Cost of sales (676 500) Gross profit 127 250 Operating expenses (92 250) Operating profit 35 000 Interest expense (12 250) 2 Profit before tax 22 750 Income tax (9 100) Profit after tax 13650

Statement of Financial Position as at 31 December 2018 Assets R Non-current assets 146 250 Current assets 327 500 Total assets 473 750 Equity and liabilities Shareholders equity 196 650 Non-current liabilities 128 250 Current liabilities 148 850 Total equity and liabilities 473 750

Note

1. Current assets (R327 500) include accounts receivable of R168 000, inventories of R75 000 and cash of R84 500.

2. Inventories as at 31 December 2017 amounted to R105 000.

3. Current liabilities comprise accounts payable only.

4. The following ratios were calculated:

2018 2017 Current ratio 2.20:1 1.85:1 Gross margin 15.83% 24.12%

5. All purchases of inventory and sales are on credit.

Required:

2.1 Calculate each of the following ratios. Where applicable, round off answers to two decimal places.

2.1.1 Gross Profit margin

2.1.2 Debtor collection period

2.1.3 Creditor payment period

2.1.4 Inventory turnover

2.1.5 Return on own capital