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VarsityTimes
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TAKE YOUR PICK (OPTION A or B)
CHECK OUT PAGE 1
OPTION A FOR OPTION A
QUESTION 1 [18 MARKS]
1.1 Calculate the following ratios for 2023 and 2024: (16 marks)
We will calculate:
1. Gross Profit Margin
2. Average Collection Period
3. Total Asset Turnover
4. Debt Ratio
OPTION B
QUESTION 1
1.1 Ratio Calculations (16 marks)
Here are the calculated ratios for 2023 and 2024:
Ratio 2023 2024
Gross Profit Margin 50% 46.67%
Average Collection Period 66.58 days 99.75 days
Total Asset Turnover 0.80 times 0.857 times
Debt Ratio 50% 57.1%
Disclaimer:
The materials provided are intended for educational and informational purposes only. They
should not be submitted as original work or used in violation of any academic institution's
policies. The buyer is solely responsible for how the materials are used.
, For more assistance and exclusive, unique assignments, contact us on Telegram:
https://t.me/varsity_times
OPTION A
QUESTION 1 [18 MARKS]
1.1 Calculate the following ratios for 2023 and 2024: (16 marks)
We will calculate:
1. Gross Profit Margin
2. Average Collection Period
3. Total Asset Turnover
4. Debt Ratio
Step 1: Gross Profit Margin
From the income statement:
• 2023: Gross Profit = EBIT + Admin expenses = R680 000 + R520 000 = R1 200 000
• 2024: Gross Profit = R800 000 + R600 000 = R1 400 000
Let’s assume Sales and COGS are the unknowns we back-calculate using the Gross Profit.
2023:
But since we only need the margin:
VarsityTimes
For more assistance and exclusive, unique assignments, contact us on Telegram:
https://t.me/varsity_times
TAKE YOUR PICK (OPTION A or B)
CHECK OUT PAGE 1
OPTION A FOR OPTION A
QUESTION 1 [18 MARKS]
1.1 Calculate the following ratios for 2023 and 2024: (16 marks)
We will calculate:
1. Gross Profit Margin
2. Average Collection Period
3. Total Asset Turnover
4. Debt Ratio
OPTION B
QUESTION 1
1.1 Ratio Calculations (16 marks)
Here are the calculated ratios for 2023 and 2024:
Ratio 2023 2024
Gross Profit Margin 50% 46.67%
Average Collection Period 66.58 days 99.75 days
Total Asset Turnover 0.80 times 0.857 times
Debt Ratio 50% 57.1%
Disclaimer:
The materials provided are intended for educational and informational purposes only. They
should not be submitted as original work or used in violation of any academic institution's
policies. The buyer is solely responsible for how the materials are used.
, For more assistance and exclusive, unique assignments, contact us on Telegram:
https://t.me/varsity_times
OPTION A
QUESTION 1 [18 MARKS]
1.1 Calculate the following ratios for 2023 and 2024: (16 marks)
We will calculate:
1. Gross Profit Margin
2. Average Collection Period
3. Total Asset Turnover
4. Debt Ratio
Step 1: Gross Profit Margin
From the income statement:
• 2023: Gross Profit = EBIT + Admin expenses = R680 000 + R520 000 = R1 200 000
• 2024: Gross Profit = R800 000 + R600 000 = R1 400 000
Let’s assume Sales and COGS are the unknowns we back-calculate using the Gross Profit.
2023:
But since we only need the margin:
