Answer Happy

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: Assets Non-current assets Inventories Accounts receivable Cash and cash equivalents Equity and liabilities Equity Accounts payable Additional information The profit after tax for the year ended 31 December 2020 was R240 000 All purchases and sales of inventories are on credit 2021 (R) 2 320 000 720 000 360 000 440 000 3 840 000 480 000 3 840 000 2020 (R) 1 960 000 440 000 500 000 340 000 3 240 000 2040 000 380 000
11 2 3.1.3 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: Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following: The rate at which inventory is sold The ratio of the company's net profit to its total revenue. A comparison of the company's long-term debt to its equity. An indicator of how profitable a company is relative to its total assets. 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. Will the company be able to pay its short-term debts if business conditions are unfavourable? Use 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 (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (4 marks (4 marks)