13. The following information has been taken from Duncan's financial statements for the year- ended 31 December 2017: Duncan has inventory turnover of six times The year-end receivables collection period is 42 days Cost of sales for the year was K1,690,000 Credit purchases for the year were K2.150.000 Duncan's cash cycle at 31 December 2017 was 68days All calculations should be made to the nearest full day, and the trading year has 365 days. What is Duncan's trade payables collection period as at 31 December 2017? 14. The following extracts of the financial statements of Mafishi have been obtained: Revenue K980,000 Cost of sales (K530,000) Operating expenses (K210,000) Equity K600,000 Loan, repayable 2022 K300,000 Deferred tax K44,000 Payables K46,000 What is the return on capital employed of Mafishi? 15. Mafishi Co has calculated that its current year Price Earnings (P/E) ratio is 12.6. The sector average P/E ratio is 10.5 Which ONE of the following would be an explanation of the difference between Mafishiis P/E ratio and the sector average? A Mafishi is seen as a less risky investment than the sector average, and there is higher confidence about the future prospects of Mafishi. B. Mafishi is seen as a more risky investment than the sector average, however there is higher confidence about the future prospects of Mafishi. C. Mafishi is seen as a less risky investment than the sector average, however there is low confidence about the future prospects of Mafishi. D. Mafishi is seen as a more risky investment than the sector average, and there is low confidence about the future prospects of Mafishi. 16. Which ONE of the following is not a valid reason for a decrease in gross profit margin? A A major customer renewed their contract during the year following a competitive tender process B New plant and equipment used in the manufacturing process has been purchased in the year, which has increased the depreciation expense Delivery costs to customers have risen following an increase in the rates charged by couriers D A national recession has led to sales prices being cut in response C