REQUIRED Use the information provided below to answer the following questions. Note: Use formulas provided in the formula sheet only (that appear after QUESTION 5). Answers to the ratios must be expressed to two decimal places. 2.1 Calculate the percentage profit on sales after the cost of sales only have been accounted for. (2 marks) 2.2 Has the liquidity of the company improved? Use two relevant ratios to motivate your answer. (6 marks) 2.3 Use the relevant ratios to comment on the effectiveness with which the company has employed the inventory and debtors during 2022. (6 marks) 2.4 Use TWO (2) appropriate ratios that shareholders would use to assess the profitability of the company for 2022 by examining the after-tax returns earned. Comment on your calculations. (6 marks) INFORMATION Extracts of the financial statements of Ultra Limited are presented below: ULTRA LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 R Sales (90% on credit) 8 800 000 Cost of sales 4 000 000 Operating profit 2 400 000 Profit after tax 1 400 000 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2022 (R) 2021 (R) Non-current assets 6 800 000 5 600 000 Inventory 380 000 300 000 Trade and other receivables (Accounts receivable only) 520 000 460 000 Cash and cash equivalents 320 000 400 000 Shareholders equity 5 000 000 3 800 000 Non-current liabilities 2 400 000 1 900 000 Current liabilities 620 000 1 060 000 Additional information The authorised share capital of the company consists of 1 500 000 ordinary shares of which 1 000 000 have been issued