Use the information provided below to calculate the following ratios for 2018. Where applicable, round off answers to two decimal places. 4.1.1 Gross margin (2 marks) 4.1.2 Debtors collection period (2 marks) 4.1.3 Inventory turnover (use average inventory) (2 marks) 4.1.4 Return on equity (2 marks) 4.1.5 Debt to assets (2 marks) 4.1.6 Current ratio (2 marks) 4.1.7 Creditors payment period (2 marks) 4.2 Comment briefly but meaningfully on the following ratios: 2018 2017 4.2.1 Acid test ratio 1.73:1 1.87:1 (2 marks) 4.2.2 Profit margin 10.08% 5.21% (2 marks) 4.2.3 Return on assets 39.47% 28.67% (2 marks) INFORMATION Excerpts of financial data of Scorpio Limited for 2018 are as follows: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 R Sales 7 040 000 Cost of sales (4 576 000) Gross profit 2 464 000 Operating profit 1 056 000 Interest expense (70 400) Profit before tax 985 600 Tax (275 968) Profit after tax 709 632 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 R Assets Non-current assets 1 372 800 Inventories 633 600 Accounts receivable 422 400 Cash 246 400 2 675 200 Equity and liabilities Equity 1 689 600 Long-term loan 598 400 Accounts payable 316 800 Other current liabilities 70 400 2 675 200 KK 5 Note: Inventories as at 31 December 2017 amounted to R528 000. All purchases and sales of inventories are on credit.