Q1. Below is the Balance Sheets and other financial information for

Cookies Chocolates Ltd.

	30th June 2015	30th June 2016
Accounts Receivable	6,000	8,000
Inventory	18,000	20,000
Bank		2,000
Land and Buildings	76,000	70,000
Motor Vehicles	14,000	9,000
Shop Plant and Equipment	21,000	20,000
Office Equipment	5,000	15,000
	140,000	144,000
Accounts Payable	12,000	20,000
Bank Overdraft	8,000
Mortgage Loan	20,000	24,000
Equity	100,000	120,000
	140,000	144,000

Additional information:

• Gross Profit for 2015 is $36,000 and for 2016 is $40,000
• COGS for 2015 is $74,000 and 2016 is $80,000
• Opening Inventory 01/07/2014 was $26,000
• Credit sales for both years are 60% of total sales
• Total expenses(Excluding Tax) for 2015 are $16,000 and 2016 $15,000
• Opening balance of Accounts Receivable 01/07/2014 was $4,000
• Opening balance of Equity 01/07/2014 was $80,000
• Company tax rate 30%

Required: Calculate the following ratios for both years 2015 and 2016

1. Current Ratio
2. Liquid Ratio
3. Average Collection Period
4. Inventory Turnover in days
5. Return on Equity