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Please help with this problem Receivables collection period (5 marks) (iv) Average inventory period (v) Gearing ratio using the information in (b), comment on the

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Receivables collection period (5 marks) (iv) Average inventory period (v) Gearing ratio using the information in (b), comment on the financial performance and position of HD plc. (5 marks) (Total 20 marks) 3. JD pic produces and sells two products, X and Y, and uses an absorption costing system. Fixed production overheads are absorbed at a rate of $9.00 per machine hour based upon levels of production. Estimates for next period include: Product X Product Y Units Units 15,800 15,300 26,300 1,940 26,400 Sales Production 1,900 Opening BUSI1103-E1BUSI1 103-E1 Selling price per unit 5 E2.40 Variable production costs E32,472 Machine hours E1.15 E7,650 2,200 Fixed production overheads incurred for the year was E28,350 for the period and selling 1,055 4945 and administration overheads at $9,580. Any under or over absorption fixed production overheads are transferred to profit and loss account in the period. Required: (a) Determine the net profit using absorption costing for the next period based upon the estimates above. Working should be clearly shown. Opening stock per unit same as the production cost per unit for the period. (9 marks b) The company is considering changing to a marginal costing system. Prepare a profi statement for next period in a marginal costing format, for each product and in total (6 marks State the reason for, and clearly demonstrate in figures, the difference in net prof between (a) and (b). (5 marks (Total 20 mark factures one s minimum any revel varies from

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