The excerpts of the financial statements of Octopus Limited for the year ended 31 December 2022 are shown below. Octopus Limited Statement of comprehensive income for the year ended 31 December 2022 2022 2021 R R Sales 120 000 000 105 000 000 Gross profit 48 000 000 42 000 0000 Other operating income 8 500 000 7 500 000 Operating expenses (35 000 000) (33 000 000) Operating profit 21 500 000 16 500 000 Finance income 1 450 000 1 200 000 Finance costs (1 890 000) (I 950 000) Profit before tax 22 941 100 15 750 000 Income tax (6 882 330) (4 725 000) Profit after tax 16 058 770 11 025 000 Octopus Limited Statement of financial position as at 31 December 2022 2022 2021 2020 R R R Assets Non-current assets 32 850 000 29 950 000 26 000 000 Inventories 8 250 000 5 645 000 7 250 000 Accounts receivable 3 940 000 5 525 000 4 950 000 Cash 960 000 880 000 800 000 Total assets 46 000 000 42 000 000 39 000 000

Equity and liabilities Ordinary share capital (460 000 shares) 15 000 000 15 000 000 15 000 000 Retained earnings 9 580 000 7 200 000 6 800 000 Long-term loan (18%) 9 230 000 10 500 000 12 000 000 Accounts payable 5 140 000 4 325 000 3 750 000 Other current liabilities 7 050 000 4 975 000 1 450 000 Total equity and liabilities 46 000 000 42 000 000 39 000 000 Using the financial statements provided above, calculate the following ratios for the 2022 financial year (show all calculations, including the analytical formula used to calculate each ratio): 2.1 Net operating profit margin 2.2 Return on total assets 2.3 Return on capital employed 2.4 Times interest earned 2.5 Capital gearing ratio