Superior Limited manufactures widgets. They sell their products to large department stores and offer all customers 20 days credit terms. This is consistent with credit terms offered by their competitors in the industry. The following represents an extract of relevant financial information of Superior Limited for ratio analysis. 2018 2017 Net sales revenue Cost of goods sold Gross profit Interest expense Other expenses Profit before tax Income tax Profit after tax Balance sheet items Cash Receivables Inventory Property, plant & Equipment Total Assets Current liabilities Non-Current liabilities (Bank Loan) Equity Total Liabilities & Equity 180,000 (130,000) 50,000 (10,000) (11.000) 29,000 (5,000) 24,000 18,000 14,000 25,200 39,000 96,200 29,000 26,437 40,763 96,200 170,000 (135,000) 35,000 (10,000) (7,000) 18,000 (3.000) 15,000 12,500 10,164 16,734 35,000 74,398 24,300 23,335 26,763 74,398 2016 150,000 (130,000) 20,000 (10,000) (6,500) 3,500 (500) 3,000 15,000 7,535 9,228 31,000 62,763 21,000 30,000 11,763 62,763 Required (a) Calculate the average collection period (in days) and the inventory turnover ratios for Superior Limited for both 2018 and 2017 (Round all ratios to 2 decimal places where relevant). Comment on these ratios in light of movement from 2018 and 2017 and provide one (1) recommendation as to how each of these ratios could be improved. (10 marks) (b) Calculate two (2) solvency ratios for Superior Limited for 2018 and 2017 and provide some analysis on the movement from 2017 to 2018. Which stakeholders would be interested in these ratios and why? (4 marks)