Question $2(21$ Marks$)$

Use Callaho Inc.$\text{'}$s financial statements to compute the required ratios below for $2022$ and $2023,$ and indicate whether the change from year to year is favourable or unfavourable and why. All the sales recorded in the income statement are on credit. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places.

a$.$ Accounts receivable collection period

b$.$ Equity ratio

c$.$ Return on total assets

d$.$ Return on equity

e$.$ Times interest earned ratio

f$.$ Debt to equity ratio

g$.$ Acid test ratio

Callaho Inc.

Income Statement

For Years Ended December $31,2023,2022,$ and $2021$

Sales

$\backslash$table$[[2023,2022,2021],[$$$1,639,40,$$$1,437,70,$$$1,374,90$