Semester 1 2025 (185354) - DUE 17 April 2025 ; 100
% TRUSTED workings, Explanations and Solutions.
QUESTION 1 [18 MARKS]
Read the information provided and then answer the questions
that follow. Indicate all the steps in your calculations
1.1 Use the financial statement above to calculate the following
ratios for 2023 and 2024: (16 marks) Ratio Gross profit margin
Solvency Average collection period Total asset turnover Debt ratio
QUESTION 1.1: Ratio Calculations (16 marks)
1. Gross Profit Margin
Formula:
Gross Profit Margin=SalesGross Profit×100
2023:
1 200 0004 000 000×100=30%
2024:
1 400 0006 000 000×100=23.33% %