Question 3 The following information was extracted from the financial statements of Rossi Sdn. Bhd.: Inventories, 1 December 2020 Purchases Sales Inventories, 30 November 2021 Rentals expenses Salaries Cash in hand Cash in bank Trade receivables Trade payables Accruals RM 4,500 55,000 80,000 5,000 2,000 1,500 300 3,000 12,000 3,500 1,500 Required: (a) Calculate the following ratios and state each formula: (i) Average inventories; (ii) Gross profit margin; (iii) Net profit margin; (iv) Current ratio; (v) Quick ratio; (vi) Inventories turnover times; (vii) Trade receivables turnover days. (21 marks) (b) Briefly explain what is ratio analysis. (4 marks) [Total: 25 marks)