question archive QUESTION 4 Use the information provided in QUESTION 3 to answer the following questions: 4
QUESTION 4 Use the information provided in QUESTION 3 to answer the following questions: 4
Subject:AccountingPrice: Bought3
QUESTION 4 Use the information provided in QUESTION 3 to answer the following questions: 4.1 Calculate the following ratios for 2021. Express answers to two decimal places. 4.1.1 Gross margin 4.1.2 Inventory tumover 4.1.3 Acid test ratio (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) 4.1.4 Debt to equity 4.1.5 Earnings per share 4.2 (4 marks) 4.3 (3 marks) Are the collections from credit sales satisfactory? Motivate your answer by using the relevant ratio. Would the shareholders of Harmony Limited be satisfied with the return on their investments? Motivate your answer with the use of a relevant ratio. Suggest THREE (3) ways in which Harmony Limited can improve its gross margin ratio, without increasing the selling price of the inventories. 4.4 (3 marks)
