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QUESTION 3Read the information below and answer the following questionsINFORMATIONThe extracts of the financial statements of Disney Limited for 2020and 2021 are provided below.Disney LimitedStatement of Comprehensive Income for the year ended 31 December2021RSales 1 960 000Cost of sales 1 240 000Operating profit 472 000Interest expense 48 000Profit before tax 424 000Profit after tax 305 280STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)AssetsNon-current assets 2 320 000 1 960 000Inventories 720 000 440 000Accounts receivable 360 000 500 000Cash and cash equivalents 440 000 340 0003 840 000 3 240 000Equity and liabilitiesEquity 2 960 000 2 040 000Non-current liabilities 480 000 820 000Accounts payable 400 000 380 0003 840 000 3 240 000Additional information1. The profit after tax for the year ended 31 December 2020 wasR240 000.2. All purchases and sales of inventories are on credit.Use the information provided above to answer the followingquestions:3.1 Calculate the ratio (expressed to two decimal places) for 2021to reflect each of the following:3.1.1 The rate at which inventory is sold (2 marks)3.1.2 The ratio of the company's net profit to its total revenue.(2 marks)3.1.3 A comparison of the company’s long-term debt to its equity.(2 marks)3.1.4 An indicator of how profitable a company is relative to itstotal assets. (2 marks)3.1.5 Determination of how easily a company can pay the interest onits outstanding debt. (2 marks)3.1.6 The period that the company takes to collect the money owedto it from its credit sales. (2 marks)Will the company be able to pay its short-term debts if businessconditions are unfavourable? Usean appropriate ratio to motivate your answer.3.2 (4 marks)Comment on the returns of the shareholders on their investments(expressed to two decimalplaces) over the two-year period (2021 and 2022). Motivate youranswer with the relevantcalculations.3.3 (4 marks)