Question: Need answer for question 5.2 Use the information provided below to answer the following questions. 5.1 Calculate the ratios for 2021 (expressed to two decimal


Use the information provided below to answer the following questions. 5.1 Calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: 5.1.1 The percentage of profit on sales that the company produced from its operations prior to (2 marks) considering finance charges and taxes. 5.1.2 The amount of time it takes for the clients of Supreme Limited to settle their debts. (2 marks) 5.1.3 The efficiency with which the company used its net assets to produce revenue. (2 marks) 5.1.4 The efficiency of the company in using all its capital to generate profits. (2 marks) 5.1.5 The proportion of the profit after tax that is kept back in the company as retained earnings. (2 marks) 5.1.6 A measure of the company's ability to pay its short-term debts within one year. (2 marks) 5.1.7 A measure of the proportion of the total assets that are financed by creditors instead of investors. (2 marks) 5.2 Comment on your answers in questions 5.1.4, 5.1.5 and 5.1.6 above. ( 6 marks) 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: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: \begin{tabular}{|l|r|r|} \hline & 2021 & 2020 \\ \hline & \multicolumn{1}{|c|}{R000} & \multicolumn{2}{c|}{R000} \\ \hline Sales & 216486 & 143499 \\ \hline Cost of sales & 120270 & 72090 \\ \hline Operating profit & 65802 & 46581 \\ \hline Investment income & 4116 & 6237 \\ \hline Interest expense & 17634 & 12198 \\ \hline Profit before tax & 52284 & 40620 \\ \hline Net profit & 36599 & 28434 \\ \hline \end{tabular} Note: 1. All sales are on credit. 2. \begin{tabular}{|l|c|} \hline & R'000 \\ \hline Dividends for the year ended 31 December 2021 & 22232 \\ \hline \end{tabular}
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