QUESTION 3 Use the extract from the financial statements of Peter's Plumbing Services to calculate the Current Ratio and the Acid Test Ratio for PPS: Sundry Debtors Inventory Marketable Securities Cash in Bank Prepaid Expenses Accounts Payable Sundry Debtors Debentures Outstanding Expenses R400,000 R160,000 R80,000 R120,000 R40,000 R80,000 R160,000 R200,000 R160,000 Please type out the complete formula and then do the rest of the calculation to show how you came to your conclusions. Marks are given for each step in the calculations. [10]

Use the extract from the financial statements of Peter's Plumbing Services to calculate the Current Ratio and the Acid Test Ratio for PPS: Please type out the complete formula and then do the rest of the calculation to show how you came to your conclusions. Marks are given for each step in the calculations. [10]