INFORMATION

The extracts of the financial statements of Disney Limited for 2020 and 2021 are provided below

Disney Limited
Statement of Comprehensive Income for the year ended 31 December 2021
	R
Sales	1 960 000
Cost of sales	1 240 000
Operating profit	472 000
Interest expense	48 000
Profit before tax	424 000
Profit after tax	305 280

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
	2021 (R)	2020 (R)
Assets
Non-current assets	2 320 000	1 960 000
Inventories	720 000	440 000
Accounts receivable	360 000	500 000
Cash and cash equivalents	440 000	340 000
	3 840 000	3 240 000
Equity and liabilities
Equity	2 960 000	2 040 000
Non-current liabilities	480 000	820 000
Accounts payable	400 000	380 000
	3 840 000	3 240 000

Additional information

1. The profit after tax for the year ended 31 December 2020 was R240 000.

2. All purchases and sales of inventories are on credit.

Use the information provided above to answer the following questions:

3.1 Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following:

3.1.1 The rate at which inventory is sold (2 marks)

3.1.2 The ratio of the company's net profit to its total revenue. (2 marks)

3.1.3 A comparison of the companys long-term debt to its equity. (2 marks)

3.1.4 An indicator of how profitable a company is relative to its total assets. (2 marks)

3.1.5 Determination of how easily a company can pay the interest on its outstanding debt. (2 marks)