5.000 ABFA1163 FINANCIAL ACCOUNTING II Question 3 The following information was extracted from the financial statements of Rossi Sdn. Bhd.: RM Inventories, 1 December 20/20 4,500 Purchases 55.000 Sales 80,000 Inventories, 30 November 2021 Rentals expenses 2.000 Salaries 1,500 Cash in hand 300 Cash in bank 3.000 Trade receivables 12.000 Trade payables 3.500 Accruals 1.500 Required: a) Calculate the following ratios and state each formula: Average inventories: Gross profit margin: Net profit margin: (iv) Current ratio: (v) Quick ratio: (vi) Inventories turnover times; (vii) Trade receivables turnover days. (21 marks) (b) Briefly explain what is ratio analysis. (4 marks) [Total: 25 marks)