INFORMATION Extracts of the financial statements of Ultra Limited are presented below: ULTRA LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales (90% on credit) Cost of sales Operating profit Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: your calculations. (6 marks) Non-current assets Inventory Trade and other receivables (Accounts receivable only) Cash and cash equivalents Shareholders' equity Non-current liabilities Current liabilities 2022 (R) 6 800 000 380 000 520 000 320 000 5 000 000 2 400 000 620 000 R 8 800 000 4 000 000 2 400 000 1 400 000 2021 (R) 5 600 000 300 000 460 000 400 000 3 800 000 1 900 000 1 060 000 Additional information The authorised share capital of the company consists of 1 500 000 ordinary shares of which 1 000 000 have been issued.

wculate the percentage profit on sales after the cost of sales only have been accounted for. ( 2 marks) gitas the liquidity of the company improved? Use two relevant ratios to motivate your answer. ( 6 marks) 3 Use the relevant ratios to comment on the effectiveness with which the company has employed the inventory and debtors during 2022. (6 marks) 2.4 Use TWO (2) appropriate ratios that shareholders would use to assess the profitability of the company for 2022 by examining the after-tax returns earned. Comment on your calculations. ( 6 marks)