Calculate the ratios for 2022 only that reflect the following. Express the answers to two decimal places. 2.1.1 The amount of the net income generated as a percentage of the revenue. (2 marks) 2.1.2 A measure the company's ability to pay its short-term obligations using all the assets that can be converted into cash within a year. (2 marks) 2.1.3 The amount of time taken by the company to collect the trade debts. (2 marks) 2.1.4 The time during which trade payables remain outstanding. (2 marks) 2.1.5 A measure of the efficiency of the company's net assets in generating revenue. (2 marks) INFORMATION Extracts of the financial statements of Supreme Limited are provided below: SUPREME LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 R Cost of sales 2 400 000 Gross profit 1 440 000 Operating profit 684 000 Profit before tax 600 000 Profit after tax 420 000 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2022 (R) 2021 (R) Non-current assets 825 000 950 000 Inventories 1 145 000 630 000 Trade and other receivables (Accounts receivable only) 380 000 330 000 Cash and cash equivalents 55 000 70 000 Shareholders equity 1 650 000 1 150 000 Non-current liabilities 500 000 700 000 Current liabilities (Accounts payable only) 255 000 130 000 Note: Eighty percent (80%) of the sales is on credit. Fifty percent (50%) of the purchases of inventory is on credit. 2.2 REQUIRED Answer the following questions based on the ratios provided by Creole Limited below: 2.2.1 Comment on the following ratios: Debt to assets Interest coverage Gross margin (Gross profit margin) Earnings per share (8 marks) 2.2.2 What recommendations would you make in respect of the liquidity of Creole Limited? (2 marks) INFORMATION The following are the ratios of Creole Limited for 2022 and 2021: 2022 2021 Current ratio 4.22:1 2.50:1 Acid-test ratio 0.88:1 1.84:1 Debtor collection period 45 days 29 days Inventory turnover 12 times 18 times Debt to assets 32% 43% Interest coverage 9 times 10 times Gross margin (Gross profit margin) 43% 49% Earnings per share 170 cents 195 cents