Runners Distributors Balance Sheets for the year ended 31 December 2020 and 2021 Assets Non-current assets Current assets: 2021 2020 155705 151146 185827 175955 Inventories Accounts receivable 83274 71382 78881 78230 Cash and cash equivalents 23672 26343 341532 327101 Total assets Owners' equity and liabilities Owners' equity Non-current liabilities Current liabilities 262410 261960 22274 21548 56848 43593 Accounts payable 32180 23130 Other current liabilities 24668 20463 Total owners' equity and liabilities 341532 327101 Sales (all credit) Cost of sales (all credit) Gross profit Runners Distributors Income Statements for the year ended 31 December 2020 and 2021 2021 537588 (248937) 2020 516086 (225698) 290388 288651 Operating expenses: (287550) (278227) Selling, general and administrative (220753) (215496) Other expenses (66797) (62731) Operating profit 1101 12161 Tax Other income: Profit before interest Interest expense Profit before tax Net profit after tax 5445 3604 Interest income 5445 3604 6546 15765 (222) (214) 6324 15551 (2846) 3478 (6998) 8553 Answer ALL the questions in this section. 2 Use the information provided above to calculate the following ratios and interpret them over the two-year period (2020-2021) taking into consideration the additional information provided on each ratio. Show your workings and where applicable, round off answers to two decimal places. 2.1 Profit margin 2.2 Acid test ratio 2.3 Inventory turnover [Inventory for 2019: 67 830] 2.4 2.5 Debtors collection period (Current credit terms to debtors are 30 days) Return on assets (Current rate on fixed deposits at banks: 5.55 %, Current rate at banks for business loans: 16.00 %, the current inflation rate: 4.12%)