29 February 2020. Statement of comprehensive income of Blue Traders for the year ended 29 February 2020. 2020 R Sales 1024 000 Cost of sales (462 000 562 000 Gross profit Add: Other operating income 24 000 Services rendered 24 000 Gross operating income 586 000 (173 000) Less: Operating expenses Rent expense Rates and services 36 000 15 000 10 000 Internet expense Wages and salaries 25 000 20 000 Security expense 12 000 Insurance expense 30 000 Telephone Credit losses 5.000 Depreciation 20 000 Operating profit Add: Interest income 413 000 8 000 421 000 Profit before interest expense (9 000 Less Interest expense Net profit for the year 30,0 Statement of financial position of Blue Traders on 29 February 2020 2020 2019 Assets Non-current assets 1700 000 1 500 000 Property plant and equipment 1 300 000 1 500 000 200 000 Financial assets 200 000 Current assets 104 000 101 000 50 000 55 000 Trading inventories Trade receivables 32 000 28 000 Cash and cash equivalents 22 000 18 000 Total assets 1 804 000 1 601 000 Owner's equity and liabilities Owner's equity 564 000 152 000 1 200 000 1 400 000 Non-current liabilities 1 200 000 1 400 000 Mortgage loan 40 000 49 000 Current liabilities 40 000 49 000 Trade creditors 1804 000 1601 000 Total equity and liabilities Additional information: . No capital contributions were made during the year Assume a 365 day year: 75% of sales are on credit; Purchases constitute 60% of cost of Sales So% of all purchases are on credit Reute a Additional information: . . No capital contributions were made during the year, Assume a 365 day year, 75% of sales are on credit; Purchases constitute 50% of cost of sales, 50% of all purchases are on credit. . Required: Calculate the following ratios for the year ended 29 February 2020 and comment on the business's profitability and liquidity. Refer, in particular, to the past figures shown. Show all formulas and The Independent Institute of Education (Pty) Ltd 2020 Page Sale 19:20 working as marks will be awarded to these. Q.2.1 Gross profit percentage (2019 = 50%; industry average = 55%). Round to two decimal (6) places Q.2.2 Quick ratio (2019 -0.94:1). Round to two decimal places (71 Q.2.3 Average trade debtors collection period (2019 = 20 days, industry average 30 days) 19 Q.2.4 Average inventory turnover rate (2019 = 8.6 times: industry average = 9), 18 Question 3 (Marks: 151 The following are the total sales figures for Olaf Ltd for the financial quarter ended 31 March 2020