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Finance management Extract of Statement of Comprehensive Income for the year ended 28...

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Finance

Finance management

Extract of Statement of Comprehensive Income for the year ended 28 February 2023

$Sales (70% of sales on credit) 355 000Cost of sales 215 000Opening inventory 71 500Purchases (all credit) 230 000 301 500Closing inventory -86 500

Extract of Statement of Financial Position as at 28 February 2023

$Current assets220 500Inventories 86 500Account receivables 50 000Cash and cash equivalents 84 000Current liabilities68 350Accounts payable47 500Other liabilities 20 850

Use the information provided to calculate and comment on the following ratios for 2023. Where relevant, round off answers to two decimal places.

a. Current ratio b. Acid test ratio c. Inventory turnover d. Debtor collection period e. Creditor payment period

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