Coconut Plantations Pty Ltd’s financial records reveal the following at 30 June 2018.

a. Assuming a 365-day year, calculate the days inventory ratio. Interpret and explain this ratio.
b. Coconut Plantations Pty Ltd proposes to improve control of inventory and to further reduce days inventory levels by five days. If this is achieved, calculate how many times inventory would be turned over per annum. Estimate by how much the average inventory would need to be reduced.
c. Assuming a 365-day year, calculate the days debtors ratio. Interpret and explain this ratio.
d. Advise Jo Geter, the sole shareholder of Coconut Plantations Pty Ltd, what actions can be taken to improve collections from debtors.

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Net sales (all credit) Cost of sales Accounts receivable - beginning Accounts receivable - ending Inventory beginning Inventory - ending $1675 000 1 025 000 93010 145 000 175 000 170 000