100 Question # 01 (Marks 15) As per the table given below there are 150 units in ending inventory. Transaction Number of Units Unit Cost Beginning PKR 11000 Inventory Purchase 125 PKR 11250 Sold 50 Sold 70 Purchase 75 PKR 11500 130 Purchase 100 PKR 11750 Use following assumptions of cost of inventory to identify given cost of units. i. FIFO/Periodic ii. FIFO/Perpetual iii. LIFO/Periodic iv. LIFO/Perpetual Average Cost/Periodic vi. Average Cost/Perpetual Sold V. Question # 02 (Marks 10) Current ratio Acid-test ratio Debt-to-total-assets Inventory turnover Average collection period Total asset turnover Net profit margin Return on investment (ROI) Return on equity (ROE) 20X1 4.2 2.1 23% 8.7x 33 days 3.2x 3.8% 12.1% 15.7% 20X2 2.6 1.0 3396 5.4x 36 days 2.6% 2.596 6.5% 9.7% 20X3 1.8 0.6 479 3.5x 49 days 1.9% 1.4% 2.8% 5.4% Considering the above ratios of a firm what could be the possible reason(s) of decline in Current ratio, acid test ratio and net profit margin