too 2955 SuK D 3340 248 9755 945 238. 2570 Question 1. Section B Speed Motors Ltd presents you with the Proft or Loss Statement and Statement of Financial Poston fr the years 2019 and 2020 Speed Motors Ltd Statement of Proft or Loss Sales Revenue Cost of Sales Gross Prof Administration and Distribution Expenses Profit before Tax Income Tax Expense Profit for the Year 3126T 2019 00 000 500 3.000 3400 2.100 200 (1099) 020 LOGO 550 600 610 wwww Speed Motors Ltd Statement of Financial Position Cost Depreciation Land and Buildings Non Current Assets 2020 000 2019 000 000 000 4800 4.360 100 4200 141009 3,900 Cost Plant and Machinery Depreciation 1.800 1.200 13000 1.440 300 900 5640 4,800 Current Assets: Inventory 900 300 Receivables 1200 2100 200 600 Total Assets 7.740 5,400 Equity Share Capital-E1 Ordinary Shares Retained Earnings Current Liabilities Bank Overdraft Payables Taxation 3,000 3.600 930 60 4.530 4,260 1.770 630 1,110 210 330 3210 300 1.140 7,740 5,400 Take into consideration that the dividend for 2019 was 300.000 and for 2020 330,000 Required: a. You are asked to calculate the following ratios Gross Profit Margin Operating Profit Margin operating profit Return on Capital Employed ex profil Iv. Net Assets Tumover v. Current ratio capital employed: equity long term bay 100/sales. 100/Capital employed vi Quick ratio vil Accounts Receivable Collection Period vil Accounts Payable Payment Period ix Inventory Collection Period 1 (18 marks) estion 1. Section B. Speed Motors Ltd presents you with the Profit or Loss Statement and Statement of Financial Position for the years 2019 and 2020: Speed Motors Ltd Statement of Profit or Loss Sales Revenue Cost of Sales Gross Profit Administration and Distribution Expenses Profit before Tax Income Tax Expense 2020 2019 000 000 4.500 3,000 (2.100) (900) 2,400 (1.200) 2,100 (1,080) 1,200 1,020 (600) (510) 600 510 Profit for the Year Speed Motors Ltd Statement of Financial Position 2020 000 000 2019 000 000 Non Current Assets: Land and Buildings Cost 4,800 4,350 Depreciation (600) 4,200 (450) 3,900 Plant and Machinery Cost 1,800 1,200 Depreciation (360) 1.440 (300) 5,640 900 4,800 Current Assets: Inventory 900 300 Receivables 1.200 2.100 300 600 Total Assets 7,740 5,400 Equity: Share Capital-E1 Ordinary Shares Retained Earnings Current Liabilities: Bank Overdraft Payables Taxation 3,600 3,600 930 4,530 660 4,260 1,770 630 1,110 210 330 3.210 300 1.140 7,740 5,400 Take into consideration that the dividend for 2019 was 300,000 and for 2020 330,000. Required: a. You are asked to calculate the following ratios: L Gross Profit Margin apital employed equity + long term ba Operating Profit Margin opecating profitx 100/sales. Return on Capital Employed Nex profit x 100/ capital iv. Net Assets Turnover v. Current ratio vi. Quick ratio vii. Accounts Receivable Collection Period vill Accounts Payable Payment Period ix. Inventory Collection Period employed (18 marks) 7