1. The following information is available for A boutique at 31 December 2013. All purchases and sales are on credit and all invoices should be paid within 30 days. Sales $300,000 Stock 1 January 2012 $21,000 Stock 31 December 2013 $19,000 Purchases $187,500 Cost of sales $190,000 Gross profit $110,000 Net profit $30,000 Capital employed $200,000 Cash at bank $1,000 Debtors $15,000 Creditors $20,000 REQUIRED a) Using the above information, calculate the following ratios to one decimal place: 0 Current ratio (i) Quick ratio (iii) Gross profit margin (iv) Net profit margin (1) Return on capital employed (vi) Rate of stock turnover (vii) Debtors' collection period in days (viii) Creditors' settlement period in days The following ratios have been calculated for a competitor,B boutique. Current ratio Quick ratio Gross profit margin Net profit margin Return on Capital Debtors' collection period Creditors' settlement period 1.5:1 0.6:1 20% 9% 8% 30 days 42 days REQUIRED b) (i) State which business performed better during the year ended 31 December 2013. (ii) Compare four of the ratios that you have calculated for A boutique with the same four ratios provided for B boutique to justify your