The following information relates to Eston Limited:

Statements of Comprehensive Income as at: 31 December

	2021	2020
Sales	35000000	30000000
Cost of sales	(23000000)	(20000000)
Gross profit	12000000	10000000
operating expenses	(5100000)	(4000000)
Distribution Cost	2000000	1500000
Administration expenses	3100000	2500000
operating profit	6900000	6000000
finance cost	(400000)	(500000)
profit before tax	6500000	5500000
income tax	(1500000)	(1500000)
profit after tax	5000000	400000

Statements of Financial Position as at 31 December:
Assets	2021	2020
Non current Assets	20000000	18000000
property plant and equipment	20000000	18000000
Current Assets	12000000	12000000
inventories	6000000	6000000
Accounts Recievable	5000000	4000000
cash and cash equivelants	1000000	2000000
Total Assets	32000000	30000000
Owners Equity and Liabilities
Owners Equity	20000000	18000000
ordinary share Capital	10000000	10000000
retained earnings	10000000	8000000
Non current liabilities	4000000	6000000
Current Liabilites	8000000	6000000
Accounts Payable	8000000	6000000
Total owners equity and liabilities
Statements of changes in equity as at: 31 December:
	2021	2020
Balance at end of previous year	18000000	16500000
profit for the year	5000000	4000000
ordinary share divedends	(3000000)	(2500000)
balance at the end of the current year	20000000	18000000

Additional information

All purchases and sales of inventories are on credit.

Eston Limiteds ordinary share capital consists of 10 000 000 ordinary shares.

The market price of the shares was R5.60 on 31 December 2020 and R7.50 on 31 December 2021.

Required:

Calculate the following ratios for Eston Limited for 2021 and 2020 and comment on your answers:

5.1 Gross margin

5.2 Debtors collection period

5.3 Return on equity

5.4 Dividend per share

5.5 Debt to equity