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REQUIRED 2.1 Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following:

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REQUIRED 2.1 Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: 2.1.1 The time taken by the company to settle its debts with trade suppliers. (3 marks) 2.1.2 The amount of debt that the company uses to finance its assets. (3 marks) 2.1.3 The operational effectiveness of the company before considering interest income, interestexpenseandcompanytax.2.1.4Thepercentageoftheprofitthathasbeenputbackintothecompany.(3marks)(3marks) 2.1.5 What investors are willing to pay for the shares of the company with due consideration given to the profit generated by each share in the company. (3 marks) 2.2 Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. (10 marks) INFORMATION The information given below was extracted from the books of Oslo Limited: INFORMATION The information given below was extracted from the books of Oslo Limited: Profit after tax 3. ADDITIONAL INFORMATION Dividends for the year ended 31 December 2021 amounted to R39 027 . There were 11500 shares in issue. The market price per share was R20.50 on 31 December 2021. Credit terms to debtors are 30 days. Ratios of Oslo Limited for 2021 as compared to the industry average are as follows: \begin{tabular}{|l|c|c|} \hline Ratio & Oslo Limited & Industry average \\ \hline Acid test ratio & 0.85:1 & 1.1:1 \\ \hline Current ratio & 2.33:1 & 2.75:1 \\ \hline Debtors collection period & 37.35 days & 30 days \\ \hline Inventory turnover & 4.51 times & 6 times \\ \hline Return on equity & 15.68% & 18.25% \\ \hline \end{tabular}

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