The extracts of the financial statements of Retina Ltd for 2020 and 2021 are provided below: Retina Ltd Extracts from the Statement of Comprehensive Income for the year ended 31 December 2021 and 2020

Sales (60% credit) 900 000 800 000 Cost of sales (all credit) 540 000 440 000 Operating expenses 150 000 140 000 Operating profit 210 000 220 000 Interest expense 10 000 12 000 Net profit 200 000 288 000 Extracts from the statement of Financial Position for the year ended 31 December 2021 and 2020 2021 (R) 2020 (R) Non-current assets 900 000 840 000 Inventories 60 000 50 000 Accounts receivable 65 000 48 000 Cash - 40 000 Accounts payable 70 000 66 000 Bank overdraft 12 000 -

calculations for 2021 only and comment on each answer: (The comparative figures for 2020 are provided in brackets. Where applicable, answers must be rounded off to 2 decimal places).

1.Gross Margin (2020: 45%)

2. Debtors collection period (2020: 36.50 days)

3. Acid test ratio (2020: 1.33:1)

4. Return on assets (2020: 22.49