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You are provided with the following summarised information relating to Virgo Limited, a wheel caps and rims distributor: Statement of Financial Position ( balance sheet

You are provided with the following summarised information relating to Virgo Limited, a wheel caps and rims distributor:
Statement of Financial Position (balance sheet) as at 31 December 2019:
2019
R
Assets
Non-current assets
936000
Cash
168000
Inventory
432000
Trade debtors
288000
TOTAL ASSETS
1824000
Equity
Shareholders Equity
1152000
Liabilities
Long term loan (15% p.a.)
408000
Accounts payable
216000
Dividends payable
48000
TOTAL EQUITY AND LIABILITIES
1824000
Statement of Comprehensive Income (income statement) as at 31 December 2019:
2019
R
Sales
4800000
Less Cost of Sales
3120000
Gross Profit
1680000
Operating profit
720000
Interest expense
48000
DIFM YEAR 3 ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE
REGENT BUSINESS SCHOOL (RBS)JULY 2023
28
Profit before tax
672000
Income taxation
268800
Net profit for the year
403200
Additional Information:
6. All purchases and sales of inventories are on credit. Inventories on 31 December 2018 amounted to R300000.
7. The authorised share capital consists of 500000 shares of which 300000 were issued.
8. Interim dividends paid during the year amounted to R113280.
9. The shares of Virgo Limited were trading at 350 cents per share on the stock/securities exchange on 31 December 2019.
10. The following ratios are available as at 31 December 2019 and 2018:
2019
2018
Debtors collection period
21.9 days
37.6 days
Return on equity
35%
28%
Inventory turnover rate
8 times
11.2 times
Acid test ratio
1.73:1
1.42:1
Debt to Equity
35.42%
24.56%
Current ratio
?
2.15:1
Creditors payment period
?
35 days
Required:
1.1 Use the information provided above to calculate the following ratios for 2018. Where applicable, round off answers to two decimal places.
1.1.1 Turnover to net assets (3)
1.1.2 Creditor payment period (4)
1.1.3 Earnings retention ratio (2)
1.1.4 Return on capital employed (2)
1.1.5 Price earnings ratio (2)
1.1.6 Current ratio (2)

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