Answer Happy

Disney Limited Disney Limited Statement of Comprehensive Income for the year ended 31 December 2021 Sales Cost of sales Operating profit Interest expense Assets Profit before tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 3.3 Profit after tax Non-current assets Provided below. Inventories 1. Accounts receivable Cash and cash equivalents Equity and liabilities Equity 2. Non-current liabilities Accounts payable 3.2 Additional information 3.1 3.1.1 3.1.2 3.1.4 3.1.5 2020 & 2021. are 3.1.6 The profit after tax for the year ended 31 December 2020 was R240 000. All purchases and sales of inventories are on credit. Use the information provided above to answer the following questions: 2021 (R) 2 320 000 720 000 360 000 440 000 3 840 000 2 960 000 The ratio of the company's net profit to its total revenue. 3.1.3 A comparison of the company's long-term debt to its equity. Debt to equity An indicator of how profitable a company is relative to its total assets. 480 000 400 000 3 840 000 Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following: The rate at which inventory is sold Determination of how easily a company can pay the interest on its outstanding debt. The period that the company takes to collect the money owed to it from its credit sales. 6/ R 1 960 000 1 240 000 472/000 472000 48 000 Will the company be able to pay its short-term debts if business conditions are unfavourable? Use an appropriate ratio to motivate your answer. 424 000 2020 (R) Comment on the returns of the shareholders on their investments (expressed to two decimal places) over the two-year period (2021 and 2022). Motivate your answer with the relevant calculations. 305 280 1 960 000 440 000 500 000 340 000 3 240 000 Net profit margin = Not Profit/ Total Revenue 2 040 000 820 000 380 000 3 240 000 (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (4 marks) (4 marks)