Question 1 The following is an extract of Doreen's financial statements for the year ended 30 April 2020 Statement of Profit or Loss for the year ended 30 April 2020 Sales 375,000 Less: Cost of sales Inventory as at 1 May 2019 32,000 Purchases 281.250 313,250 Inventory as at 30 April 2020 (28.000 (285,250) Gross profit 89,750 Less: Expenses (44,750) Net profit 45,000 428,000 Statement of Financial Position As At 30 April 2020 Non-current assets Current assets Inventory 28,000 Trade receivables 22,500 Cash and bank 1,500 Total assets Current liabilities Trade payables 52,000 480,000 (30,000) 450,000 450,000 Capital The following have been calculated for Remmy, a competitor in the same type of business (0) Gross profit ratio 20.2% (ii) Net profit ratio 10% (II) Return on capital employed 9% ki) Current ratio 1.5:1 (V) Acid-test ratio 0.7:1 (vi) Inventory turnover 8 times (vii) Trade receivables period 28 days (viii) Trade payable period 35 days (ix) Non-current asset turnover 1.2:1 REQUIRED: (a) Calculate the ratios shown above for Doreen's business. The ratios should be calculated to two decimal places. Workings must be shown. [18] (b) Comment on the profitability, liquidity and efficiency of Doreen as compared to Remmy (in 80 words only). [7] [Total: 25 marks]