FINANCE [30 marks] 2021 2020 155705 185827 83274 78881 151146 175955 71382 78230 23672 26343 341532 327101 262410 261960 22274 21548 56848 43593 32180 23130 24668 20463 327101 341532 Runners Distributors Balance Sheets for the year ended 31 December 2020 and 2021 Assets Non-current assets Current assets: Inventories Accounts receivable Cash and cash equivalents Total assets Owners' equity and liabilities Owners' equity Non-current liabilities Current liabilities Accounts payable Other current liabilities. Total owners' equity and liabilities Runners Distributors Income Statements for the year ended 31 December 2020 and 2021 2021 2020 Sales (all credit) 537588 516086 Cost of sales (all credit) (248937) (225698) Gross profit 288651 290388 Operating expenses: (287550) (278227) Selling, general and administrative. (220753) De (215496) come! Other expenses (62731) (66797) oran 1101 Operating profit 12161 AN Other income: 5445 3604 Te Interest income 5445 3604 Profit before interest 6546 15765 Interest expense (222) (214) Profit before tax 6324 15551 Tax (2846) (6998) Net profit after tax 3478 8553 Answer ALL the questions in this section. 2 Use the information provided above to calculate the following ratios and interpret them over the two-year period (2020-2021) taking into consideration the additional information provided on each ratio. Show your workings and where applicable, round off answers to two decimal places. 2.1 Profit margin 2.2 Acid test ratio 2.3 Inventory turnover [Inventory for 2019: 67 830] 2.4 Debtors collection period (Current credit terms to debtors are 30 days) 2.5 Return on assets (Current rate on fixed deposits at banks: 5.55 %, Current rate at banks for business loans: 16.00 %, the current inflation rate: 4.12 %) Use the following information to calculate the economic order quantity: As part of its trading activity, Runners Distributors purchases 500 sneakers at R 500 each on average per annum. The roses are sold at R 1000 each on average at a steady rate during the year. The cost of placing a single order amounts to R 500. Inventory holding cost amounts to R 41 per unit. Use the following information to calculate the cost of not accepting a discount. (5 marks) Tekkies Wholesaler's normal credit terms to Runners Distributors are 30 days but is prepared to allow a 3 % rebate ifRunners Distributors pays the account within 15 days. Calculate the cost to Runners Distributors of not accepting the discount. (4 marks) (4 marks) (4 marks) (4 marks) (6 marks) (3 Marks) 3