sibaya Company (Pty)Ltd ‘s balance sheet and income statement are provided below: ISIBAYA COMPANY(Pty)Ltd BALANCE SHEET AS AT DECEMBER 31
Isibaya Company (Pty)Ltd ‘s balance sheet and income statement are provided below:
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ISIBAYA COMPANY(Pty)Ltd BALANCE SHEET AS AT DECEMBER 31 |
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2019 |
2018 |
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Assets |
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Cash |
835 000 |
92 000 |
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94 000 |
90 000 |
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Inventory |
625 000 |
60 000 |
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Plant & Equipment |
500 000 |
525 000 |
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Land |
150 000 |
150 000 |
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890 000 |
917 000 |
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Liabilities and Shareholders Equity |
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Accounts Payable |
73 000 |
62 000 |
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Notes Payable |
115 000 |
160 000 |
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Ordinary Shares ,no par value |
440 000 |
400 000 |
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262 000 |
295 000 |
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890 000 |
917 000 |
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ISIBAYA COMPANY (Pty)Ltd INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER
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2019 |
2018 |
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Sales |
549 000 |
468 150 |
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Less: Cost of sales |
360 000 |
289 500 |
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Gross Margin |
189 000 |
178 650 |
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Less Operating Expenses |
86 500 |
55 450 |
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Income before tax |
102 500 |
123 200 |
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Income Taxes |
18 500 |
16 650 |
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Net Income |
84 000 |
106 600 |
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The company paid cash dividends of R2.00 per share during the Year 2019. On December 31, 2019, the stock was listed on the stock exchange at a price of R78.25 per share.
Required:
Compute the following ratios for Year 2019:
(a) Accounts receivable turnover
(b) Average days to collect receivables
(c) Inventory turnover
(d) Average days to sell inventory
(e) Debt to assets ratio
(f) Debt to equity ratio
(g) Net margin
(h) Asset turnover
(i) Return on investment
(j) Dividend yield
Round your answers to one decimal place.Comment on each of the ratios and compare the company’s performance for the two years
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