al Saturn Ltd. Has sales of S 800,000, a net income of 60,000 and the following balance sheet: Amount (5) Amount (5) Assets Cash Accounts Receivable Inventories Net Fixed Assets Total Assets Liabilities and Owners' Equity $ 10,000 Accounts Payable 550.000 Other Current Liabilities $ 150,000 Long-term Debt $ 90,000 Common Equity $ 300.000 Total Liabilities and Owners' Equity $ 30,000 $ 20,000 $50,000 $ 200,000 $ 300,000 Additional Information: The cost of goods sold is $ 600,000. Of which 70% was annual purchase. The company has no preferred stock. Industry Information: Ratios Current Ratio Quick Ratio Inventory Turnover Average Age of Inventory Average Collection Period Average Payment Period Industry Average 3.0 1.5 92 75 20 30 Instructions: Calculate the current ratio, quick ratio and average payment period of Saturn Ltd. (3 Marks) Chappell Co. is the major supplier of Saturn. During the year Saturn was granted a 30 days credit term by Chappell. On the basis of the credit term granted by Chappell and the industry average comment on Saturn's management of its accounts payable. (2 Marks) b) Zealco, has S42,000 in cash, S155.000 in inventory, $82,000 in accounts receivable, and $72,000 in accounts payable. The annual sale of the firm is $2800,000, cost of goods sold is 70% of annual sales and annual purchase is $882,000, Calculate Zeal's cash conversion cycle. (3 Marks) Calculate its Net investment in working capital. (2 Marks)