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QUESTION 3 (20 MARKS) Answer the questions from the information provided. 3.1 Calculate the ratios for 2021 (answers expressed to two decimal places) that would reflect each of the following: 3.1.1 The percentage of profit on sales that the company produced from its operations prior to considering interest and taxes. ( 2 marks) 3.1.2 The amount of time it takes for the company's clients to settle their debts. (2 marks) 3.1.3 The number of times the company has sold and replenished its inventory during the year. (2 marks) 3.1.4 The portion of the company's profit allocated to each outstanding ordinary share. (2 marks) 3.1.5 The amount of time it takes for the company to settle its debts arising from credit purchases. (2 marks) 3.1.6 A measure of the company's ability to pay its short-term obligations within one year. (2 marks) 3.2 Comment on your answers in questions 3.1.2,3.1.6 and 3.1.7 above. (6 marks) INFORMATION Extracts of the Statement of Comprehensive Income and Statement of Financial of Finch Limited are as follows: Position Additional information: 1. All purchases and sales of inventories are on credit. 2. Inventories amounted to R600 000 on 31 December 2020. 3. The ordinary shares were all issued at R4 each. 4. Credit terms to debtors are 30 days

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