REQUIRED Use the information provided below to answer the following questions. Note: Use the formulas provided in the formula sheet only (that appear after QUESTION 5). Answers to the ratios must be expressed to two decimal places. 4.1 What percentage of the sales is made up of net income? (2 marks) 4.2 Calculate TWO (2) appropriate liquidity ratios and comment on the liquidity of the company. (6 marks) 4.3 Calculate the relevant ratios and comment on the effectiveness with which the company has employed the debtors and creditors. (6 marks) 4.4 Calculate TWO (2) appropriate ratios that would be used to assess the profitability of the company by examining the income from operations and the after-tax returns earned. Comment on your calculations. (6 marks) \begin{tabular}{|l|r|} \hline Operating profit & 1200000 \\ \hline Interest expense & 200000 \\ \hline Profit before tax & 1000000 \\ \hline Company tax & 270000 \\ \hline \end{tabular} Additional information - Ninety percent (90%) of the sales is on credit. - All purchases are on credit. - Credit terms to debtors are 60 days and credit terms from suppliers are 90 days. APPENDIX 1: PRESENT VALUE OF R1 APPENDIX 2 : PRESENT VALUE OF A REGULAR ANNUIT OF R1 PER PERIOD FOR N PERIODS