Calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the...

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Calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The percentage of profit on sales that the company produced from its operations prior to considering finance charges and taxes. The amount of time it takes for the clients of Supreme Limited to settle their debts. The efficiency with which the company used its net assets to produce revenue. The efficiency of the company in using all its capital to generate profits. The proportion of the profit after tax that is kept back in the company as retained earnings. A measure of the company's ability to pay its short-term debts within one year. A measure of the proportion of the total assets that are financed by creditors instead of investors. INFORMATION The following information was extracted from the accounting records of Supreme Limited for the financial years ended 31 December 2021 and 2020: SUPREME LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment Investments Inventories Accounts receivable Cash EQUITY AND LIABILITIES Share capital Retained income Loan (18%) Accounts payable 2021 R'000 221 034 10 200 37 671 38 829 7 899 102 332 74 464 92 802 46 035 2020 R'000 124 665 26 250 47 364 44 034 2 820 73 500 65 532 76 248 29 853 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: Sales Cost of sales Operating profit Investment income Interest expense Profit before tax Net profit Note: 1. 2. All sales are on credit. Dividends for the year ended 31 December 2021 2021 R'000 216 486 120 270 65 802 4116 17 634 52 284 36 599 2020 R'000 143 499 72 090 46 581 6 237 12 198 40 620 28 434 R'000 22 232 Calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The percentage of profit on sales that the company produced from its operations prior to considering finance charges and taxes. The amount of time it takes for the clients of Supreme Limited to settle their debts. The efficiency with which the company used its net assets to produce revenue. The efficiency of the company in using all its capital to generate profits. The proportion of the profit after tax that is kept back in the company as retained earnings. A measure of the company's ability to pay its short-term debts within one year. A measure of the proportion of the total assets that are financed by creditors instead of investors. INFORMATION The following information was extracted from the accounting records of Supreme Limited for the financial years ended 31 December 2021 and 2020: SUPREME LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment Investments Inventories Accounts receivable Cash EQUITY AND LIABILITIES Share capital Retained income Loan (18%) Accounts payable 2021 R'000 221 034 10 200 37 671 38 829 7 899 102 332 74 464 92 802 46 035 2020 R'000 124 665 26 250 47 364 44 034 2 820 73 500 65 532 76 248 29 853 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: Sales Cost of sales Operating profit Investment income Interest expense Profit before tax Net profit Note: 1. 2. All sales are on credit. Dividends for the year ended 31 December 2021 2021 R'000 216 486 120 270 65 802 4116 17 634 52 284 36 599 2020 R'000 143 499 72 090 46 581 6 237 12 198 40 620 28 434 R'000 22 232