Read the scenario below and a nswer the questions that follow: Sail Along (Pty) Ltd is a small sailing boat and equipment manufacturer. It al.) has its own retail outlet and supplies to other shops. It is based in the Eastem Cape and, due to the extent of open water lakes in the area, has always run a successful business. Over the past few years, the community has become more health conscious and interest in outdoor sporting activities has increased. Many foreigners spend their summers here and partake in water sports. The company is funded by debt and equity. Two years ago, it had a R150 000 cash injection from shareholdersto reduce its debt levels. This was to help the company through the pandemic. At around the same time, the company launched an online purchase option, which has been very successful. Sail Along developed a unique kite surfer that is able to lift a surfer out of the water at least 10 metres. Manufacturing commenced in mid-2020 and the company is experiencing good demand through online sales. see the attached photos and then answer the following Required: You have been asked to prepare a report on the company's liquidity, efficiency and solvency for the year. Refer to the note overleaf and complete the following questions: a. Calculate the ratios (a) to (g) for 2021 in the table above. Note that the 2020 ratios are given. b. Analyse the ratios by providing possible causes for and effects of the improvement or deterioration thereof from 2020 to 2021. c. Provide two possible ways to improve the financial ratios. Consider the specifics of the scenario when providing your answers.
Read the scenario below and a nswer the questions that follow:
Sail Along (Pty) Ltd is a small sailing boat and equipment manufacturer. It al.) has its own retail outlet and supplies to other shops. It is based in the Eastem Cape and, due to the extent of open water lakes in the area, has always run a successful business.
Over the past few years, the community has become more health conscious and interest in outdoor sporting activities has increased. Many foreigners spend their summers here and partake in water sports.
The company is funded by debt and equity. Two years ago, it had a R150 000 cash injection from shareholdersto reduce its debt levels. This was to help the company through the pandemic.
At around the same time, the company launched an online purchase option, which has been very successful.
Sail Along developed a unique kite surfer that is able to lift a surfer out of the water at least 10 metres. Manufacturing commenced in mid-2020 and the company is experiencing good demand through online sales.
see the attached photos and then answer the following
Required:
You have been asked to prepare a report on the company's liquidity, efficiency and solvency for the year. Refer to the note overleaf and complete the following questions:
a. Calculate the ratios (a) to (g) for 2021 in the table above. Note that the 2020 ratios are given.
b. Analyse the ratios by providing possible causes for and effects of the improvement or deterioration thereof from 2020 to 2021.
c. Provide two possible ways to improve the financial ratios. Consider the specifics of the scenario when providing your answers.
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