Extracts of financial statements of Sunrise Limited for 2022 are as follows

Extracts of financial statements of Sunrise Limited for 2022 are as follows:
4.1
Herald Limited
Statement of Comprehensive Income for the year ended 31 December 2022
R
Sales (all credit) 15 400 000
Cost of sales (13 000 000)
Gross profit 2 400 000
Operating expenses (1 800 000)
Operating profit 600 000
Interest expense (304 000)
Profit before tax 296 000
Tax (88 800)
Profit after tax 207 200
Statement of Changes in Equity the year ended 31 December 2022
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Dividends declared 88 000
Statement of Financial Position as at 31 December 2022
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Assets
Non-current assets 1 444 000
Inventories 3 344 000
Accounts receivable 1 608 000
Cash 208 000
6 604 000
Equity and liabilities
Ordinary share capital (460 000 shares) 1 840 000
Retained earnings 904 000
Long-term loan (18%) 1 700 000
Accounts payable 700 000
Other current liabilities 1 460 000
6 604 000
4.1.1 Operating margin (2 marks)
4.1.2 Turnover to net assets (2 marks)
4.1.3 Debtor collection period (2 marks)
4.1.4 Dividend per share (2 marks)
4.1.5 Return on equity (2 marks)
4.1.6 Earnings retention ratio (2 marks)
4.1.7 Current ratio (2 marks)
You are required to comment on the following ratios provided for 2021 and 2022. (11 marks)
2022 2021
Return on capital employed 21.87% 16.78%
Acid test ratio 0.84:1 1.34:1
Creditor payment period 20 days 59 days
4.2