$2\mathrm{.}1\mathrm{.}1$ The profit of the company relative to sales after deducting the cost of sales.

$2\mathrm{.}1\mathrm{.}2$ The ability of the company to profitably utilize its capital, which includes both debt and equity.

$2\mathrm{.}1\mathrm{.}3$ The proportion of the total assets that are financed by total debe.

$2\mathrm{.}1\mathrm{.}4$ The ability of the company to repay its shart$-$term debts under distress conditions, on the assumption that inventories would

have no value at all.

$2\mathrm{.}1\mathrm{.}5$ The portion of the company's profit that is allocated to each outstanding ordinary share.

$2\mathrm{.}1\mathrm{.}6$ An indication of the percentage of profit that has been put back into the company$-$

$2\mathrm{.}2$ Comment on the following ratios that have been calculated for Zorro Ltd:

$2\mathrm{.}2\mathrm{.}1$ Profit margin

$2\mathrm{.}2\mathrm{.}2$ Return on equity

INFORMATION

Excerpts of the financial data of Zorro Lted for $2022$ are as follows:

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2022$

STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER $2022$

Additional information

All purchases and sales of inventories were on credit.

Inwentories on $31$ December $2021$ amounted to R$2890000.$

The following ratios were calculated for $2022$ and $2021$ :

The market prices of the companys shares for $2022$ and $2021$ were $R4\mathrm{.}00$ and $83\mathrm{.}50$ respectively.