ON/C 0 T QUESTION 1 The following information was extracted from the financial statements of Dollarama Ltd: Summarised Income Statement For The Year Ended 31 March 2 C 6 3 2021 $000 2022 Sales $000 $000 $000 6,200 7,600 Less: Cost of sales Opening inventory 720 1,080 Add: Purchases 4,160 5,160 4,880 6.240 Less: Closing inventory 1,080 3.800 1,440 4,800 Gross profit for the year 2.400 2,800 Less: Operating expenses 1.800 2.200 Net profit for the year 600 600 1) Cash sales for the year ended March 31, 2021 were $200,000 and cash sales for the year ended March 31, 2022 were $600,000 respectively. 2) All purchases were on credit. Balance Sheet Extracts As At March 31 Notes: Current Assets Inventory Account Receivable 2021 $000 2022 $000 $000 $000 1,080 1.440 900 1,980 1.400 2,840 Current Liabilities Accounts payable 820 1.380 Bank overdraft in CIBC 40 860 340 1,720 REQUIRED (a) Calculate, to two decimal places, the following ratios for each of the two years: i. Working capital ii. Acid test ratio (Quick ratio) iii. Inventory turnover iv. Accounts receivable collection period in days v. Accounts payable settlement period in days (20 marks) (b) Briefly comment upon the changes between March 31, 2021 and March 31, 2022 in respect of the following ratios and provide ONE possible explanation for the change in each case: i. Acid test ratio (Quick ratio) ii. Accounts receivable collection period in days iii. Accounts payable settlement period in days (10 marks) (Total: 30 marks)