3.1 Calculate the ratios for 2021 (answers expressed to two decimal places) that would reflect each of the following: 3.1.1 The percentage of profit on sales that the company produced from its operations prior to considering interest and taxes. (2 marks) 3.1.2 The amount of time it takes for the companys clients to settle their debts. (2 marks) 3.1.3 The number of times the company has sold and replenished its inventory during the year. (2 marks) 3.1.4 The portion of the company's profit allocated to each outstanding ordinary share. (2 marks) 3.1.5 The amount of time it takes for the company to settle its debts arising from credit purchases. (2 marks) 3.1.6 A measure of the companys ability to pay its short-term obligations within one year. (2 marks) 3.1.7 The percentage of total assets that is financed by creditors instead of investors. (2 marks) 3.2 Comment on your answers in questions 3.1.2, 3.1.6 and 3.1.7 above. (6 marks) INFORMATION Extracts of the Statement of Comprehensive Income and Statement of Financial Position of Finch Limited are as follows: FINCH LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 R Sales 2 400 000 Cost of sales 1 500 000 Operating profit 540 000 Interest expense 60 000 Profit before tax 480 000 Profit after tax 336 000 FINCH LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 Assets R Non-current assets 2 850 000 Inventories 915 000 Accounts receivable 360 000 Cash and cash equivalents 690 000 Total assets 4 815 000 Equity and liabilities Ordinary share capital 3 000 000 Retained earnings 705 000 Non-current liabilities 600 000 Current liabilities (Accounts payable only) 510 000 Total equity and liabilities 4 815 000 Additional information: 1. All purchases and sales of inventories are on credit. 2. Inventories amounted to R600 000 on 31 December 2020. 3. The ordinary shares were all issued at R4 each. 4. Credit terms to debtors are 30 days.