Q1

a. The owner of TechTronics Ltd has asked you to calculate the Average Inventory Turnover Period. You have found that total sales were on credit and totalled $324680, Cost of Goods Sold was $181913. The average inventory balance for this year was 48413, average debtors balance was 22798 and average total assets is $163045. The average inventory turnover period equals (show your answer to 2 decimal places )

b. The owner of TechTronics Ltd has asked you to calculate the Average Debtors Turnover Period. You have found that total sales were on credit and totalled $359892, Cost of Goods Sold was $258258. The average inventory balance for this year was 31068, average debtors balance was 29233 and average total assets is $175724. The average debtors turnover period in days equals (show your answer to 2 decimal places)

Q2

Skippy Ltd reported the following assets and liabilities at the end of 30th June 2018:

What is Skippy Ltd.'s current ratio?

\begin{tabular}{|l|r|} \hline Cash & 16,500 \\ \hline Equipment & 8,800 \\ \hline Accounts receivable & 12,000 \\ \hline Inventories & 6,500 \\ \hline Prepaid expenses & 1,200 \\ \hline Short-term borrowings & 5,000 \\ \hline Creditors & 10,500 \\ \hline Mortgage (Due 2025) & 15,000 \\ \hline Income tax payable & 1,600 \\ \hline \end{tabular}