QUESTION 3 Read the information below and answer the following questions INFORMATION The extracts of the financial state

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QUESTION 3
Read the information below and answerthe following questions
INFORMATION
The extracts of the financialstatements of Disney Limited for 2020 and 2021 are providedbelow.
Disney Limited
Statement of ComprehensiveIncome for the year ended 31 December 2021
R
Sales
1 960 000
Cost of sales
1 240 000
Operating profit
472 000
Interest expense
48 000
Profit before tax
424 000
Profit after tax
305 280
STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER:
2021 (R)
2020 (R)
Assets
Non-current assets
2 320 000
1 960 000
Inventories
720 000
440 000
Accounts receivable
360 000
500 000
Cash and cash equivalents
440 000
340 000
3 840 000
3 240 000
Equity andliabilities
Equity
2 960 000
2 040 000
Non-current liabilities
480 000
820 000
Accounts payable
400 000
380 000
3 840 000
3 240 000
Additional information
Use the informationprovided above to answer the followingquestions:
3.1 Calculate the ratio (expressed to twodecimal places) for 2021 to reflect each of the following:
3.1.5 Determination ofhow easily a company can pay the interest on its outstandingdebt.
(2 marks)
3.1.6 The period thatthe company takes to collect the money owed to it from its creditsales.
(2 marks)
3.2Will the company be able to pay its short-term debts if businessconditions are unfavourable? Use an appropriate ratio to motivateyour answer.
(4 marks)
3.3Comment on the returns of the shareholders on their investments(expressed to two decimal places) over the two-year period (2021and 2022). Motivate your answer with the relevant calculations.
(4 marks)