1. **Problem Statement:** Calculate and interpret the following financial ratios for Linda Ltd for the year 2024: a. Net Profit Margin b. Receivables Days 2. **Net Profit Margin** is the percentage of revenue that remains as profit after all expenses (including tax) have been deducted. Formula: $$\text{Net Profit Margin} = \frac{\text{Profit after Tax}}{\text{Revenue}} \times 100$$ Given: - Profit after Tax = 145,600 - Revenue = 750,000 Calculation: $$\frac{145,600}{750,000} \times 100 = 19.41\%$$ Interpretation: Linda Ltd keeps approximately 19.41 cents as profit for every dollar of sales after all expenses and taxes. 3. **Receivables Days** measures the average number of days it takes for a company to collect payment from its customers. Formula: $$\text{Receivables Days} = \frac{\text{Trade Receivables}}{\text{Revenue}} \times 365$$ Given: - Trade Receivables = 72,000 - Revenue = 750,000 Calculation: $$\frac{72,000}{750,000} \times 365 = 35.04 \text{ days}$$ Interpretation: On average, Linda Ltd takes about 35 days to collect payments from its customers. This indicates the efficiency of credit and collection policies. **Final Answers:** a. Net Profit Margin = 19.41% b. Receivables Days = 35.04 days