Vee-Jay Company (Pty) Ltd Extracted the following Ratios from its books for the year 2020...
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Accounting
Vee-Jay Company (Pty) Ltd Extracted the following Ratios from its books for the year 2020 together with the relevant industry averages.
RATIOS 2020 Industry average 1. Current Ratio 1,9 2
2. Acid test ratio 0,8 1
3. Inventory Turnover 4 times 6 times
4. Debtors collection period (days) 51 days 40 days
5 Creditors payment period (days) 61 days 50 days
Required:
1.For each of the above five ratios, answer the following: a. what does the ratio measure
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