QUESTION 5 (30 Marks) The following information was taken from the records of Quantum Limited for the year ended 30 June 2024: Capital (1 July 2023) 800 000 Drawings 65 000 Property, plant and equipment 2 360 700 Bank (unfavourable) 40 000 Income received in advance 22 500 Trade receivables 130 000 Trade payables 100 000 Sales 1 400 000 Net profit 1 200 000 Gross profit 600 000 Other income 900 000 Prepaid expenses 11 800 Inventory 315 000 Mortgage loan (repayable on 30 June 2026) 720 000 Additional information: · The following balances appeared in the books of Quantum Limited on 30 June 2023: o Trade receivables - R140 000. o Inventory – R475 000. o Trade payables – R68 000. · Assume 365 days in a year. · Purchases are equal to 80% of cost of sales of which 10% are made in cash. · Cash sales are equal to 40% of total sales. · Number of ordinary shares issued – 500 000 · Share price – R68 · EPS – R2,40 REQUIRED: 5.1 Calculate and comment on the following ratios for Quantum Limited at 30 June 2024: Show all calculations. Round off your final answers to two (2) decimal places. 5.1.1 Gross profit margin (2023 = 35%) (3 Marks) 5.1.2 Current ratio (2023 = 2.2) (5 Marks) 5.1.3 Debt: Equity ratio (2023 – 40%) (5 Marks) 5.1.4 Average trade creditors settlement period (2023 – 60 days) (7 Marks) 5.1.5 Price earnings ratio (2023 – 30,5) (5 Marks) 5.2 Briefly explain, with a calculation for Quantum Limited, what is meant by the term “market capitalisation”. (3 Marks) 5.3 Assuming that Quantum Limited has dividends yield of 3.3%, calculate the dividend per share. (2 Marks)