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Alyvia has obtained the following data at 31 December 2020 in respect of Justin, a possible new customer. $ Trade receivables 18,460 Cash and cash

Alyvia has obtained the following data at 31 December 2020 in respect of Justin, a possible new customer.

$
Trade receivables 18,460
Cash and cash equivalents 5,230
Inventory 34,200
Trade payables 28,560
Sales for the year 339,840
Gross profit 56,640

i. Calculate the following ratios for Alyvia's business to two decimal places: a. Current ratio b. Liquid (acid test) ratio c. Rate of inventory turnover

ii. Alyvia has also obtained the following data in respect of Carmen, another possible customer.

Current ratio 4:1
Liquid (acid test) ratio 1.62:1
Rate of inventory turnover 8 times per year

Alyvia's main concern when choosing the customer is that they should pay her promptly. Advise Alyvia which customer she should choose. Justify

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