QUESTION ONE [30] Netforce Security (Pty) Ltd Balance Sheets for 2022 and 2021 financial years are below: Assets 2022 2021 Non Current/Fixed 7 000 000 6 000 000 Inventory 500 000 300 000 Receivables 450 000 420 000 Cash 650 000 80 000 8 600 000 6 800 000 Equity and Liabilities Share Capital (R2 shares) 5 000 000 4 400 000 Share premium 200 000 100 000 Retained Income 700 000 400 000 Long term Debt 2 000 000 1 000 000 Payables 700 000 900 000 8 600 000 6 800 000 The abbreviated Income Statement for the year ended 28 February 2022: Sales (50% on credit) 3 000 000 Cost of sales (80% on credit) 2 000 000 Depreciation 120 000 Interest Expense 80 000 Net Income before Tax 900 000 Dividends 330 000 Retained Income 300 000 Required: 1.1 Calculate the following ratios for 2022 and comment. Ratios for 2021 are given in brackets. 1.1.1. Current ratio (0,89:1) (3) 1.1.2. Acid test ratio (0,56:1) (3) 1.1.3. The debtors collection period (81 days) [all debtors are on 60 days accounts] (4) 1.2. Calculate the accounts payable period (in days), noting that Netforce Ltd has, after tough negotiations secured a 90 day account with all its creditors. Note: Use average accounts payable for this calculation. (4) 1.2.1. Is this an ideal situation? Offer constructive advice to Netforce Traders. (4) 1.3. Comment in detail on the liquidity of the company. (12)