REQUIREDUse the information given below to calculate the following ratios for 2019. (Where applicable, round off answers to twodecimal places.) Also provide a brief interpretation of each answer. The comparative figures for 2018 are given inbrackets.4.1 Gross margin(2018: 60.53%)(2018: 5.02 times)(2018: 1.05:1)(2018: 60.38%)(2018: 36.45%)(2018: 29.56 days)(2018: 108.42 cents)4.24.34.44.54.64.7Inventory turnoverAcid test ratioDebt to equityReturn on equityDebtors collection periodEarnings per shareINFORMATIONFIAMMA LIMITEDEXTRACT OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER2019Sales (all credit)Operating expensesOperating profitCompany taxNote:1. The goods were sold at cost plus 90%.2. The tax rate of the company is 30%.R1 668 200(486 000)308 000(86 400)

Financial Ratios are very important when it comes to see a firm's current financial status in…

REQUIRED Use the information given below to calculate the following ratios for 2019. (Where applicable, round off answers to two decimal places.) Also provide a brief interpretation of each answer. The comparative figures for 2018 are given in brackets. 4.1 Gross margin (2018: 60.53%) Inventory turnover (2018: 5.02 times) Acid test ratio (2018: 1.05:1) Debt to equity (2018: 60.38%) Return on equity (2018: 36.45%) Debtors collection period (2018: 29.56 days) Earnings per share (2018: 108.42 cents) 4.2 4.3 4.4 4.5 -4.6 -4.7 INFORMATION FIAMMA LIMITED EXTRACT OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales (all credit) Operating expenses Operating profit Company tax TH Note: 1. The goods were sold at cost plus 90%. 2. The tax rate of the company is 30%. R 1 668 200 (486 000) 308 000 (86 400)

REQUIRED Use the information given below to calculate the following ratios for 2019. (Where applicable, round off answers to two decimal places.) Also provide a brief interpretation of each answer. The comparative figures for 2018 are given in brackets. 4.1 Gross margin (2018: 60.53%) Inventory turnover (2018: 5.02 times) Acid test ratio (2018: 1.05:1) Debt to equity (2018: 60.38%) Return on equity (2018: 36.45%) Debtors collection period (2018: 29.56 days) Earnings per share (2018: 108.42 cents) 4.2 4.3 4.4 4.5 -4.6 -4.7 INFORMATION FIAMMA LIMITED EXTRACT OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales (all credit) Operating expenses Operating profit Company tax TH Note: 1. The goods were sold at cost plus 90%. 2. The tax rate of the company is 30%. R 1 668 200 (486 000) 308 000 (86 400)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 81E

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Instructions: I. Resolve the ratios listed on table a for each year (2020 & 2021): a. For each ratio includes the formula with math computes (2020 & 2021) b. . Fill M&G Industries Ratio Analysis Table A. (2020 & 2021) II. Perform the following Analysis: a. Explain each ratio results for 2021 only. b. Compare each ratio performance with the previous year results (compare 2021 results with 2020 results) c. Compare each Ratio results for 2021 with their respective Industry average.
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a) Based on the information provided, calculate the following ratios for the years ended 31December 2021 and 2020. You should give the formula for each ratio, in addition to your calculation.I. Gross profit marginII. Operating profit marginIII. Return on equityIV. Current ratioV. Gearing
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Calculate the comparative ratio(s) for Stone limited for the year ended 30April 2019. (to two decimal places where appropriate).
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