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Presented below are a set of financial ratios provider for Catalyst X Ltd. The company manufacture cycle components to put on racing cycles. Return on

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Presented below are a set of financial ratios provider for Catalyst X Ltd. The company manufacture cycle components to put on racing cycles. Return on Assets Return on Equity Debt to Assets Days payables outstanding Days sales outstanding Inventory turnover (days) 2015 5% 2% 0.40x 15 days 43 days 25 days 2016 3% -1% 0.45x 16 days 42 days 20 days 2017 4% 0% 0.50x 17 days 43 days 30 days 2018 2% -3% 0.55x 17 days 50 days 12 days 2019 5% 0% 0.60x 17 days 70 days 10 days Further notes: - The credit terms for the company's purchases are 30 days. - The credit terms offered by the company are 25 days. Based on the above information, indicate which of the following statements is most correct by placing the number in the marked square -> 1 2 The company is collecting money effectively across the whole five-year period The company is collecting money more effectively towards the end of the five-year period The company is collecting money from receivables consistent with its credit terms across the whole five-year period The company is not effective in collecting cash from its receivables 3 4

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