Additional Question 8.5 (a) The balance sheet and other information in the question relate to Colorado Led and Columbia Ltd. Balance sheets as at 30 June 2017 Colorado Ltd Columbia Ltd Current assets Cash assets $22,900 $18,200 Receivables (net trade) 114,000 80,485 Inventories 91,330 54,260 Other 2,320 3,310 Total current assets 230,550 166,255 Non-current assets Property, plant and equipment 372,900 313,900 Total non-current assets 372,900 313,900 Total assets $603,450 $480,155 Current liabilities Payables 90,600 67,500 Total current liabiliti 90,600 67,500 Non-current liabilities Interest-bearing liabilities 135,500 112,900 Total non-current liabilities 135,500 12,900 Total liabilities 226,100 180,400 Equity Contributed equity 230,550 224,755 Retained earnings 146,800 75,000 Total equity 377,350 299,755 Total liabilities and equity $603,450 $480,155 Additional information: 1. The income statements for the two companies for the year ended 30 June reveal the following: Colorado Ltd lumbia Lto Income (sales revenue) $855,100 $648,800 Cost of sales 572,300 431,700 Profit 33,000 38,200 2. The totals of certain items as at 1 July 2016 were: Colorado Ltd Columbia Ltd Inventories $85,100 $57,200 Total assets 573,300 465,000 Retained earnings 132,200 50,900 Trade accounts receivable (net) 99,400 75,150 Calculate the following ratios for both entities. (Round times answers to 2 decimal places, e.g. 1.75 and days answers to 0 decimal places, e.g. 50. Days should be rounded up e.g. 7.07 days becomes 8 days. Assume all sales are credit sales.) Colorado Ltd Columbia Ltd i. Current ratio times times ii. Quick ratio times times iii. Inventory turnover days days iv. Average collection period for receivables days days Note: The gross accounts receivable should be used for this calculation but only net receivables is available in the question. In this case use net receivables in calculating average accounts receivable (i.e. average trade debtors)