1. Calculate the days in receivables ratio for the year ending 30 April 2020. Use the net receivables when calculating this ratio. Net sales revenue on credit for the year ending 30 April 2020 is $450,000 and for the year ending 30 April 2019 is $400,000. Assume days in the year are 365. Round your answer to the nearest day. (1 mark).

2. Complete a horizontal analysis for the "allowance for bad debts" account. Round the percentage change in the allowance for bad debts to one decimal place (1 mark)

3. Superstores Global is looking to acquire Sameeras Corner Stores. Describe two concerns Superstores Global may have relating to the financial position of Sameeras Corner Stores Conglomerate. Use the financial information in the comparative balance sheet as evidence to support these concerns. (2 marks)

As at 30/04/2020 As at 30/04/2019 122,536 80,145 163,692 (21,200) 96,411 (5,200) Current assets Cash Accounts receivable (gross) Allowance for bad debts Net accounts receivable Inventory Supplies Prepaid Rent Total Current Assets 142,492 11,675 250 3,000 91,211 5,167 210 3,000 279,953 179,733 Non-current Assets Equipment Less Accumulated Depreciation Total Non-current Assets TOTAL ASSETS 150,000 (16,000) 150,000 (8,000) 134,000 413,953 142,000 321,733 220,531 Current Liabilities Accounts Payable Notes Payable - Short Term Unearned Revenue Total Current Liabilities 320,000 10,000 17,579 10,329 347,579 230,860 2,000 Non-current Liabilities Notes Payable - Long Term Long Term Loan Total Non-current Liabilities TOTAL LIABILITIES 33,000 7,000 40,000 387,579 2,000 232,860 Shareholders' Equity Contributed Capital Retained Profits Total Shareholders' Equity 20,000 6,374 20,000 68,873 26,374 88,873 Total Liabilities & Shareholders' Equity 413,953 321,733