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Founded in $1970$ by Bennie Joseph and Karel Snyman, Joseph & Snyman is a fully autonomous Namibian

Company. They have more than $40$ years of experience in the buying, selling and management of property.

Joseph & Snyman acts as property managers for a vast variety of landowners ranging from private

investors to financial institutions both from within the borders of Namibia as well as from neighbouring

countries. Through this association with investors from all walks of life, Joseph & Snyman has acquired

experience in and knowledge of different approaches to property investments and can therefore advise

potential investors best on the acquisition and management of fixed property. Joseph & Snyman manages

a large number of commercial and industrial properties with a gross lettable area in excess of $\backslash$pm $300000$

m$2$ and a value of over N$$4\mathrm{.}5$ billion. With an acute knowledge of the local property market and hands on

approach to managing assets, Joseph & Snyman$$s management team is well positioned to remain at the

forefront of the property management field in Namibia. With added services like valuations, appraising,

letting of properties and consulting, Joseph & Snyman must be the first choice for any client$$s one stop

property needs.

The following information relating to Joseph & Snyman has been made available to you:

Statement of comprehensive income $($extract$)$ for the year ended $30$ June $2023$

N$

Revenue $1200000$

Cost of sales $(920000)$

Gross profit $280000$

Operating expenses $(120000)$

Operating profit $160000$

Interest expense $(20000)$

Profit before tax $140000$

Taxation $(54200)$

Profit after tax $85800$

Dividends paid $40000$

Statement of financial position as at $30$ June $2023$

ASSETS $20232022$

Non$-$current assets

Property plant and equipment $540000570000$

Current assets

Inventory $164000100000$

Accounts receivable $6820084400$

Cash and cash equivalents $4440048000$

TOTAL ASSETS $816600802400$

Page $3$ of $3$

EQUITY AND LIABILITIES

Ordinary share capital $(100000$ shares$)220400240000$

Retained earnings $146200100400$

Equity $366600340400$

Non$-$current liabilities

Long$-$term debt $300000320000$

Current liabilities

Accounts payable $11400098000$

Accrued expenses $3600044000$

TOTAL EQUITY AND LIABILITIES $816600802400$

REQUIRED MARKS

a$)$

Calculate the following profitability ratios of Joseph & Snyman for the year ended

$30$ June $2023.$

$$ Gross profit margin

$$ Net profit margin

$$ Return on assets $($ROA$)$

$$ Return on equity $($ROE$)$

$$ Earnings per share $($EPS$)$

$11$

b$)$

Calculate the following short$-$term solvency $($liquidity$)$ ratios of Joseph & Snyman for

the year ended $30$ June $2023.$

$$ Current ratio

$$ Quick ratio

$$ Debt ratio

$6$

c$)$

Calculate the cash conversion cycle of Joseph & Snyman for the year ended $30$ June

$2023.$ Use $365$ days in a year

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