QUESTION THREE (15 Marks) The following is BK (Pty) Ltd statement of financial position for...
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QUESTION THREE (15 Marks) The following is BK (Pty) Ltd statement of financial position for the year ended 31 December 2022 2022 2021 Assets Non-Current assets 950 000 1 120 000 Property plant and equipment 800 0000 1 000 000 Investments 150 000 120 000 Current assets 568 000 880 000 Cash and cash equivalents 48 000 Inventory 220 000 650 000 Trade receivable 300 000 230 000 Total Assets 1 518 000 2 000 000 Equity and reserves 771 000 1 072 000 Share Capital 200 000 600 000 Retained Earnings 571 000 472 000 Non-current liabilities 200 000 240 000 Debentures 200 000 240 000 Current liabilities 547 000 688 000 Bank overdraft 25 000 Shareholders for dividend 22 000 18 000 Trade payables 525 000 645 000 1 518 000 2 000 000 Additional information Turnover for the year ended 31 December 2022 amounted to R12 000 000. The gross profit percentage is 25% Half of the turnover is credit sales and 75% of purchases are credit purchases. REQUIRED: Calculated the following ratios for the year ended 31 December 2022.
3.1 Debt ratio
3.2 Current ratio
3.3 Quick ratio
3.4 Debtors collection period
3.5 Creditors payment period
3.6 Debt to equity ratio
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