Hie Ha Traders supplies you with this information:

You are required to:

Calculate the:

1. Gross profit. 

2. Net profit.

3. Current ratio. 

4. Quick ratio.

5. Accounts receivable collection in days. 

6. Inventory holding period.

Transcribed Image Text:

STATEMENT Hie Ha Traders OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20x8 Sales (credit) Opening inventory Purchases (credit) Less: Closing inventory Cost of sales Gross profit Operating expenses Salaries Advertising NET INCOME FOR THE YEAR Capital Non-current assets Net current assets Current assets 5 000 00 125 000 00 130 000 00 80 000 00 Inventories Accounts receivable Cash and cash equivalents Current liabilities Accounts payable 4 000 00 6 000 00 Hie Ha Traders STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20x8 100 000 00 30 000 00 70 000 00 80 000 00 20 000 00 60 000 00 90 000 00 90 000 00 (50 000 00) 40 000 00 10 000 00 30 000 00 100 000 00