APEX LIMITED is a pharmaceutical entity that trades in Durban. The following information has been extracted from the books of APEX LIMITED:

APEX LIMITED

Statement of income for the year ended $28$ February

$20192018$

R R

Sales$($Credit$)400000360000$

Cost of sales $(300000)(285000)$

Opening inventory $8000075000$

Purchases $320000290000$

$4000003650000$

Closing inventory$(100000)(80000)$

Gross profit $10000075000$

Administrative costs $(50000)(45000)$

Financing cost $(10000)(10000)$

Profit before tax $4000020000$

Income tax expenses$(15000)(8000)$

Profit for the year R $25000$ R $12000$

APEX LIMITED

Statement of income for the year ended $28$ February

$20192018$

R R

ASSETS

Non$-$current assets

Property, plant and equipment carrying amount $120000140000$

Current assets

Inventory $10000080000$

Trade and other receivables $9120068400$

Cash and cash equivalents $3380026200$

Total current assets $225000174600$

Total assets R $34500$ R $314600$

EQUITY AND LIABILITIES

Equity

Share capital $100000100000$

Retained earnings $3000010000$

Total equity $130000110000$

Non$-$ current liabilities

Long$-$term loan $100000100000$

Current liabilities

Trade and other payables $114000102600$

VAT payable $10002000$

Total current liabilities $115000104000$

Total liabilities $215000204600$

Total equity and liabilities $345000314000$

Required:

Calculate the following ratios for $2019$:

$1\mathrm{.}1$ Current Ratio $(3)$

$1\mathrm{.}2$ Acid$-$test Ratio $(3)$

$1\mathrm{.}3$ Stock turnover rate $(3)$

$1\mathrm{.}4$ Debtors collection period $(3)$

$1\mathrm{.}5$ Creditors collection period $(3)$

$1\mathrm{.}6$ Gross income margin $(3)$

$1\mathrm{.}7$ Comment on the liquidity position of the company calculated above. $(3)$

$1\mathrm{.}8$ Discuss reasons why a company could have low stock turnover rate. $(4)$