Tudo Ltds Statement of Financial Position for the 2020 and 2019 financial years are presented below:

Additional information: 1. Tudos shares are currently trading at R3.20 per share. 2. Replacement cost of assets is R6 000 000. Their abbreviated Statement of Comprehensive Income for the year ended 2020 appeared as follows:

Required: 1.1 Calculate the current ratio for 2020 and comment. (The ratio for 2019 was 1.22:1) (5)

1.2 Calculate the debtors collection period for the current year. Note: Debtors terms: 60 days net. The ratio for 2019 was 66 days. (5) 1.3 Calculate the following ratios for 2020: 1.3.1 Earnings per share. (3) 1.3.2 Dividends per share. Would shareholders be happy with this dividend? Explain. (5) 1.4 Calculate the Market to Book Ratio and explain the relevance of this ratio to decision makers. (4) 1.5 Calculate the Price Earnings ratio for 2020 and explain the significance of this ratio. (3)

Assets 2020 2019 Non-current Assets Inventory Receivables Cash 5 000 000 600 000 300 000 4 700 000 700 000 320 000 300 000 100 000 6 200 000 5 820 000 2020 2019 2 200 000 Equity and Liabilities Share Capital (R2 shares) Share Premium Retained Income Long term Debt Payables 2 400 000 600 000 550 000 200 000 400 000 2 000 000 2 100 000 650 000 920 000 6 200 000 5 820 000 2 000 000 850 000 80 000 90 000 Sales (75% on credit) Cost of sales (all purchases on credit) Depreciation Interest expense Tax (30%) Net Income after tax Dividends Retained Income 160 000 300 000 150 000 150 000