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Question 3 please assist The extracts of the financial statements of Disney Limited for 2020 and 2021 are provided below. Disney Limited Statement of Comprehensive
Question 3 please assist
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 Sales Cost of sales Operating profit Interest expense Profit before tax Profit after tax R 1 960 000 1 240 000 472 000 48 000 424 000 305 280 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: Assets Non-current assets Inventories Accounts receivable Cash and cash equivalents Equity and liabilities Equity Non-current liabilities Accounts payable Additional information 2021 (R) 2 320 000 720 000 360 000 440 000 3 840 000 2 960 000 480 000 400 000 3 840 000 2020 (R) 1 960 000 440 000 500 000 340 000 3 240 000 2 040 000 820 000 380 000 3 240 000 Additional information KIU 2. 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.2 3.3 The profit after tax for the year ended 31 December 2020 was R240 000. All purchases and sales of inventories are on credit. Use the information provided above to answer the following questions: Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following: The rate at which inventory is sold The ratio of the company's net profit to its total revenue. A comparison of the company's long-term debt to its equity. An indicator of how profitable a company is relative to its total assets. Determination of how easily a company can pay the interest on its outstanding debt. The period that the company takes to collect the money owed to it from its credit sales. Will the company be able to pay its short-term debts if business conditions are unfavourable? Use an appropriate ratio to motivate your answer. Comment on the returns of the shareholders on their investments (expressed to two decimal places) over the two-year period (2021 and 2022). Motivate your answer with the relevant calculations. (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (4 marks) (4 marks)
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