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ADDITIONAL INFORMATION

1. The profit after tax for the year ended 31 December 2020 was R240 000

2. All purchases and sales of inventories ar on credit.

Question 1 : Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following:

1.1 The rate which inventory is sold

1.2The ratio of the company's net profit to its total revenue.

1.3 Acomparison of the company's long term debt to equity.

1.4 An indicator of how profitable a company is relative to its total assets.

1.5 Deterination of how easily a company can pay the interest on its outstanding debt

1.6 The period that the company takes to collect the money owed to it from its credit sales

1.7 Will the company be able to pay its short-term debts if business conditions are unfavourable? Use an appropriate ratio to motivate your answer

1.8 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.

" Disney limited. Statement of Comprehensive Income for Sales Cost of Sales Operating Profit Interest expense Profit before ta Profit after tax Statement of financial Position as 2021 ASSETS Non-current assets. Inventories Account receivable Cash and cash equivalents EQUITY LIABILITIES. Equity Non-current liabilities Accounts payable. at 2320.000 720 000 360 000 440 000 3840 000 2960 000 480 000 1960 000 1240 000 472 000 48000 424 000 305 280 31 December. 2020 1960 000 440 000 500 000 340 000 3240 000 2040 000 820 000 400 000 350 000. 3840 000 3240 000

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