3 The following are extracts from the financial statements of Floocom Ltd for the year ended 31 March 2020: Extract from Income Statement for year ended 31 March 2020 000 12,650 Revenue (all from sales) Cost of sales Opening inventory Purchases 1,434 10,120 11,554 (1,434) Closing inventory 10,120 2,530 Gross profit Extractfrom Statement of Financial Position as at 31 March 2020 Current assets: Inventory Trade receivables 000 1,434 2,214 Current liabilities: Trade payables 928 All sales and purchases were made on credit. Required a) Calculate the following performance indicators from the above extracts for the year ended 31 March 2020: i) ii) iii) iv) the gross margin the inventory turnover rate (in months, based on closing inventory) the average period of credit taken by customers (in months) the average period of credit taken from suppliers (in months) (6 marks) b) Floocom Ltd is forecasting its working capital requirement for the year ended 31 March 2021. It is making the following assumptions: Sales will increase to 14,500,000 Purchase and sales prices will remain unchanged The period of credit taken from suppliers will be 1.1 months. The period of credit given to customers will be 2.5 months Inventory levels will increase by 10% Required Redraft the extracts givenfor the year ended 31 March 2020 asthey would be for the year ended 31 March 2021 on the basis of the above assumptions. (8 marks) c) Calculate the increasein Floocom Ltd's working capital requirement for the year ended 31 March 2021 (ignore cash). (2 marks) d) Suggest ways in which the increase in working capital could be financed. (4 marks) Total 20marks