The extracts of the financial statements of Disney Limited for 2020 and 2021 are provided below.

Disney Limited Statement of Comprehensive Income for the year ended 31 December 2021

Sales R1 960 000

Cost of sales R1 240 000

Operating profit R472 000

Interest expense R48 000

Profit before tax R424 000

Profit after tax R305 280

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:

2021 (R) 2020 (R)

Assets Non-current assets 2 320 000 1 960 000

Inventories 720 000 440 000

Accounts receivable 360 000 500 000

Cash and cash equivalents 440 000 340 000

3 840 000 3 240 000

Equity and liabilities

Equity 2 960 000 2 040 000

Non-current liabilities 480 000 820 000

Accounts payable 400 000 380 000

3 840 000 3 240 000

Additional information

1. The profit after tax for the year ended 31 December 2020 was R240 000.

2. All purchases and sales of inventories are on credit. Use the information provided above to answer the following questions:

3.1 Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following:

3.1.1 The rate at which inventory is sold (2 marks)

3.1.2 The ratio of the company's net profit to its total revenue. (2 marks)

3.1.3 A comparison of the companys long-term debt to its equity. (2 marks)

3.1.4 An indicator of how profitable a company is relative to its total assets.

3.1.5 Determination of how easily a company can pay the interest on its outstanding debt. (2 marks)

3.1.6 The period that the company takes to collect the money owed to it from its credit sales. (2 marks)

3.2 Will the company be able to pay its short-term debts if business conditions are unfavourable? Use an appropriate ratio to motivate your answer. (4 marks)

3.3 Comment on the returns of the shareholders on their investments (expressed to two decimal places) over the two-year period (2021 and 2022). Motivate your answer with the relevant calculations. (4 marks)