Corel Ltd's Statement of Comprehensive Income for the year ended 31 December 2018 and Statement of Financial Position as at 31 Decernber 2017 and 2018 ar as follows: STATEMENT OF INCOME FOR E YEAR ENDED 31 Sales (all credit) Gross profit Other operating income (1 228 000) 1 076 000 84 000 1 160 000 (260 00oo) 04 000) Operating profit Interest income Interest expense Profit before tax Income tax 68 000 772 000 184 000 STATEMENT OF F .NANCAL POSITION AS AT 3 1 DECEMBER Property, plant and equipment: Land and buildings 964 000 Plant and machinery Current assets Trade and other receivables (All accounts receivable) Cash and cash equivalents 400 000 424 000 60 000 984 000 1 452 0o0 704 000 Ordinary share capital Retained earnings 492 00o Current liabilities Trade and other payables SARS: Income tax 92 000 64 000 and liabilties 1. Additional plant and machinery were purchased during 2018. There were no other non-current asset acquisitions or disposals. Depreciation for the year amounted to R316 000. 2. An interim dividend of R200 000 was paid on ordinary shares during the year. 3- The return on cquity for 2017 was 18%. QUESTION 5 (20) 5.1 Use the infomation provided above to calculate the following ratios for 2018. (Where applicable, express your answers to two decimal places 5.1.1 Profit margin S.12 Debtors collection periotd S.1.3 ventory turnover 5.14 Return on assets S.15Acid-test ratio 5.1.7 Return on equity S.2 Comment on the return on equity calculated in question 5.1. 5.3 Refer to the appropriate ratio in question 5.1 and explain whether the company will be able to pay its short-term debts when business conditions are not favourable