(7) 2 The following officiency ratios, based on the audited financial statements of Moqomo Limited,...

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(7) 2 The following officiency ratios, based on the audited financial statements of Moqomo Limited, are ponied to you: 2019 2020 Debtors' collection period 20 days 25 days Inventory turnover ratio 4,2 times 4,8 times FEQUIRED: 421 Write down the formulas that are used to calculate the debtors' collection period and the (2) inventory turnover ratio. 42.2 What does the debtors' collection period and inventory turnover ratio indicate to an (2) analysl? 423 Discuss in full your interpretation of the debtors' collection period for 2020. (2) 4.2.4 Name one risk carrying too much inventory

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