Question 3 Associated Distributors Ltd utilizes financial ratio analysis to develop strategies to improve the company's performance. . For the financial year ending December 31, 2016 the following information was extracted from the company's final accounts and balance sheet: Details. $ Cost of sales 15,000,000 Closing stock 3,000,000 Net sales 30,000,000 Accounts receivable 6,000,000 Opening stock 4,500,000 Operating expenses 8,250,000 Creditor Accounts payable 5,000,000 Cash 4,500,000 Required: (a) (i) Gross profit percentage. (3 marks) (ii) Net profit percentage. (2 marks) (iii) Current ratio. (2 marks) (iv) Liquid ratio. (2 marks) (v) Working capital. (2 marks) (vi) Average stock. (2 marks) (vii) Stock turnover. (2 marks) (viii) Average/debtors collection period (2 marks) (b) Explain to Associated Distributors Ltd the purpose of the following ratios and the meaning of the results calculated in part (a): (i) Current Ratio. (2 marks) (ii) Liquid ratio. (2 marks) (iii) Stock turnover. (2 marks) (iv) Debtors collection period. (2 marks)