The chief executive officer of Sparkrite Ltd, a trading business, has just received summary sets of financial

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The chief executive officer of Sparkrite Ltd, a trading business, has just received summary sets of financial statements for last year and this year:image text in transcribedimage text in transcribed

Required:

(a) Show, by using the data given, how you would calculate ratios that could be used to measure inventories and trade receivables levels during last year and this year.

(b) Discuss the ways in which the management of Sparkrite Ltd could exercise control over the levels of:
(i) inventories (ii) trade receivables.

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