Reference no: EM13376894

1 Use the information provided below to calculate the ratio for 2012 that would reflect each of the following (Where applicable, round off answers to two decimal places.):

1.1 The extent to which the claims of short-term creditors are covered by assets that can be translated into cash in the short term

1.2 The extent to which long-term debt is covered by shareholders' funds

1.3 The amount of funds available relative to sales, to pay the company's expenses other than its cost of sales

1.4 The rand amount of distributions during the period on behalf of each ordinary share issued

1.5 An indication of the profit that has been put back into the company

1.6 The amount that investors are willing to pay for each rand of the company's earnings

2 Provide two strategies each that the management of the company could implement In order to improve with regard to the following ratios:

1 Debtor collection period   2 Operating margin

3 Comment briefly on the following ratios:

2012    2011

3.1 Acid test ratio         4.19:1     5.53:1

3.2 Return on equity           1 08%    8.85%