The financial statements of Roster Limited is provided below. : Statements of Comprehensive Income for the year ended 31st December 2017 and 2017 Sales (all credit) Cost of Sales (all credit purchases) Gross Profit Operating expenses Selling, general and administrative Other expenses Operating Profit Other income: Interest income Profit before interest Interest expense Profit before tax Tax Profit after tax $ 3.344.800 -1.757 400 1,587,400 -975,800 792,600 183 200 611,600 5,400 5,400 617.000 -103,584 513.416 - 154 026 359,390 2016 $ 3,149,600 -1.625.200 1,524,400 -933 200 742.400 190.800 591,200 6.600 6.600 597.800 -121,216 476.584 - 142 974 333.610 Statement of Financial Position for the year ended 31st December 2017 and 2016 2017 2016 $ $ Assets Non Current assets 1,628,600 1,566,000 Current Assets: 1,275 800 1213 200 Inventories 462.400 406,000 Accounts receivable 578 200 555,600 Cash and cash equivalents 235,200 | 251,600 Total assets 2.904 400 2.779,200 Equity and liabilities Equity Ordinary Share Capital (1 200 000 Shares) Retained earnings Non-current liabilities (16% p.a) Current liabilities Accounts payable Other current liabilities Total Equity and liabilities 1,306,200 1,200,000 106 200 647 400 950.800 216.200 734,600 2.904 400 1,257,800 1,200,000 57 800 757,600 763.800 201,600 562.200 2.779 200 REQUIRED a) Use the information from the financial statements of Roster above to calculate the following ratios for 2016 and 2017. (where applicable round off answers to two decimal places.) i) Profit margin (Net profit margin) ii) Return on Assets Retum on equity iv) Pricelearnings ratio Earnings per share vi) Capital Gearing Ratio Creditors payment period vii) Debtors (Receivables) Collection Period ix) Quick Ratio and Current Ratio x) Inventory (Stock) Tumover VW) b) Analyse and comment on the performance of Roster Limited between 2016 and 2017 in terms profitability, efficiently, liquidity and investment. Word limit: 700 Manzini Information Technology (MIT) was founded by Steven Manzini ten years ago. The firm has grown into a successful business with 200 employees and many corporate clients. Recently, the business has considered converting into a public company. Advice Steven on the issues to consider as ne ponders on this decision and what implications this might entail in relation to the requirements for financial statements. The financial statements of Roster Limited is provided below. : Statements of Comprehensive Income for the year ended 31st December 2017 and 2017 Sales (all credit) Cost of Sales (all credit purchases) Gross Profit Operating expenses Selling, general and administrative Other expenses Operating Profit Other income: Interest income Profit before interest Interest expense Profit before tax Tax Profit after tax $ 3.344.800 -1.757 400 1,587,400 -975,800 792,600 183 200 611,600 5,400 5,400 617.000 -103,584 513.416 - 154 026 359,390 2016 $ 3,149,600 -1.625.200 1,524,400 -933 200 742.400 190.800 591,200 6.600 6.600 597.800 -121,216 476.584 - 142 974 333.610 Statement of Financial Position for the year ended 31st December 2017 and 2016 2017 2016 $ $ Assets Non Current assets 1,628,600 1,566,000 Current Assets: 1,275 800 1213 200 Inventories 462.400 406,000 Accounts receivable 578 200 555,600 Cash and cash equivalents 235,200 | 251,600 Total assets 2.904 400 2.779,200 Equity and liabilities Equity Ordinary Share Capital (1 200 000 Shares) Retained earnings Non-current liabilities (16% p.a) Current liabilities Accounts payable Other current liabilities Total Equity and liabilities 1,306,200 1,200,000 106 200 647 400 950.800 216.200 734,600 2.904 400 1,257,800 1,200,000 57 800 757,600 763.800 201,600 562.200 2.779 200 REQUIRED a) Use the information from the financial statements of Roster above to calculate the following ratios for 2016 and 2017. (where applicable round off answers to two decimal places.) i) Profit margin (Net profit margin) ii) Return on Assets Retum on equity iv) Pricelearnings ratio Earnings per share vi) Capital Gearing Ratio Creditors payment period vii) Debtors (Receivables) Collection Period ix) Quick Ratio and Current Ratio x) Inventory (Stock) Tumover VW) b) Analyse and comment on the performance of Roster Limited between 2016 and 2017 in terms profitability, efficiently, liquidity and investment. Word limit: 700 Manzini Information Technology (MIT) was founded by Steven Manzini ten years ago. The firm has grown into a successful business with 200 employees and many corporate clients. Recently, the business has considered converting into a public company. Advice Steven on the issues to consider as ne ponders on this decision and what implications this might entail in relation to the requirements for financial statements