QUESTION $(20$ marks$)$ You are a financial analyst, and you are currently busy performing an independent assessment on World Foods Ltd$.$ World Foods Ltd is a company that imports exotic foods from various countries for the South African market. You were provided with the following data for World Foods Ltd and their industry: Ratio $202520242023$ Industry average $2025$ Quick ratio $1\mathrm{.}0281\mathrm{.}031\mathrm{.}0291\mathrm{.}031$ Current ratio $1\mathrm{.}331\mathrm{.}211\mathrm{.}151\mathrm{.}25$ Total asset turnover $0\mathrm{.}540\mathrm{.}650\mathrm{.}700\mathrm{.}40$ Gross margin $0\mathrm{.}0820\mathrm{.}070\mathrm{.}060\mathrm{.}075$ Inventory turnover $62\mathrm{.}6542\mathrm{.}4232\mathrm{.}2553\mathrm{.}25$ Debtors$$ collection period $1139894130$ Debt$-$equity $0\mathrm{.}750\mathrm{.}850\mathrm{.}900\mathrm{.}88$ Equity multiplier $1\mathrm{.}751\mathrm{.}851\mathrm{.}901\mathrm{.}88$ Times interest earned $0\mathrm{.}94\mathrm{.}3754\mathrm{.}454\mathrm{.}65$ Depreciation $/$ Total assets $0\mathrm{.}250\mathrm{.}0140\mathrm{.}0180\mathrm{.}015$ Long$-$term debt $0\mathrm{.}450\mathrm{.}400\mathrm{.}350\mathrm{.}35$ The World Foods Ltd CEO made the following comment to you: $2025$ was a good year for World Foods Ltd with respect to our ability to meet our short$-$term obligations. We had higher liquidity mainly due to the increase in our highly liquid current assets, such as cash, accounts receivables and short$-$term investments.$$ ANNEXURE J: SUMMATIVE ASSESSMENT $2103$ HFAC$231-1-$Jan$-$Jun$2025-$SA$2-$CP$-$V$3-10122024$ REQUIRED: You are required to write a report to the board of World Foods Ltd addressing the following points: $$ Discuss whether the statement made by the CEO is correct. $$ Discuss World Foods Ltd$$s asset management with reference to the ratio results provided. $$ Discuss World Foods Ltd$$s solvency and leverage with reference to the ratio results provided. Your discussion should be based on the information provided and must be as complete as possible. MARK ALLOCATION: $$ Discuss whether the statement made by the CEO is correct. $(5$ marks$)$ Discuss World Foods Ltd$$s asset management with reference to the ratio results provided. $(6$ marks$)$ Discuss World Foods Ltd$$s solvency and leverage with reference to the ratio results provided. $(6$ marks$)$ Format and communication