QUESTION 2 (20 MARKS] The Wallbeans Group is a conglomerate of several small companies, all of which specialize in the manufacture and sale of a wide range of popular processed foods. The company's shares have been trading steadily on the Johannesburg Stock Exchange for the past few years. As a result. a prospective investor has hired you as a nancial consultant to provide an expert opinion on whether they should go ahead with the investment. You believe that a good starting point would be an analysis of the company's nancial statements using ratio analyses. The consolidated Statement of Comprehensive Income and Statement of Financial Position of the group for the year ending 29 February 2020 are given below: Statement of Comprehensive Income for the year ending 29February 2020 2020 2019 Continuing operations Sales revenue Prot (eamingsl before interest and tax Finance costs Income from investments 0.? 7.? Share of prots of associates 0.0 0.1 Income from investments 8.7 7.7 Share of profits of associates 0.0 0.1 Profit before tax 298.3 231.5 Income tax expense (109.5) (86.9) Profit for the year from continuing operations 188.8 144.6 Discontinued operations Loss from discontinued operations 48.6 0.0 Profit for the year 140.2 144.6 Other comprehensive income Total comprehensive income 140.2 144.6 Total comprehensive income attributable to: Owners of the company 104.7 109.9 Non-controlling interests 35.4 34.6 Preference shareholders 0.1 0.1 140.2 144.6Statement of Changes in Equity as at 29 February 2020 2020 2019 Rm Rm Balance at 28 February 2019 296.7 227.2 Transfer from reserves 0.0 1.6 Comprehensive income 104.7 109.9 401.4 338.7 Dividends 59.7 42.0 Balance as at 28 February 2020 341.7 296.7 Earnings per share 3.58 2.62 Dividends per ordinary share 1.33 1.00 Statement of Financial Position as at 28 February 2020 2020 2019 Rm Rm ASSETS Non-current assets Property, plant and equipment 683.1 594.2 Investments 4.1 4.6 687.2 598.8Statement of Financial Position as at 23 February 2329 2029 2319 Rm Rm ASSETS No n-current assets Property, plant and equipment 633.1 594.2 Investments 4.1 4.6 637.2 593.3 Current assets Inventon'es 439.6 331 .3 Receivables 361 . 273 .3 Holding and fellow subsidiaries 13.9 6.3 Cash assets 16.9 69.5 Total current assets 331.7 726.1 Total assets 1 563.9 1 324.9 EQUITIES AND LIABILITIES Equity Share capital 271.7 202.9 Retained earnings 341.7 296.7 613.4 685.4 Preference shares 1.0 1.0 Minority interest 37.3 184.8 Total equity 651.7 685.4 Non-current liabilities Long-term borrowings 163.3 83.2 Deferred tax 99.5 101.7 Total non-current liabilities 262.8 184.9 Current liabilities Trade and other payables 427.7 315.8 Shareholders for dividends 37.0 25.2 Current tax payable 91.9 75.9 Holding and fellow subsidiaries 11.5 1.7Shareholders for dividends 37.0 25.2 Current tax payable 91.9 75.9 Holding and fellow subsidiaries 11.5 1.7 Short-term borrowings 86.3 37.0 Total current liabilities 654.4 455.6 Total Equity and Liabilities 1 568.9 1 325.9 Assume that there are 365 days in a year Required: a) Using the following ratios,. i. Inventory turnover (2 marks) ii. Average collection period (2 marks iii. Total asset turnover (2 marks) iV. Debt ratio (2 marks) V. Times interest earned (2 marks) vi. Operating profit margin (2 marks) vii. Return on total assets (2 marks) b) Based on your answers calculated in (a) above, comment on the group's debt position, its asset management performance, and its profitability performance in 2020 as compared to 2019. (6 marks)