QUESTION 5 REQUIRED 5.1 Use the information provided below to calculate the following ratios for 2019. Where applicable, round off answers to two decimal places. Inventory turnover period Trade receivables period Trade payables period Return on capital employed Current ratio Acid-test ratio 5.2 Comment briefly but meaningfully on your answers in question 5.1 to the following ratios. The ratios for 2018 are provided in brackets. Inventory turnover period (2018: 45.67 days) Trade receivables period (2018: 29.46 days) Return on capital employed (2018: 23.67%) Current ratio (2018: 1.20:1) INFORMATION Excerpts of financial data of Virgo Limited for 2019 are as follows: INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 Cost of sales Gross profit Operating profit Interest expense STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: Assets Non-current assets Inventories Accounts receivable Cash Equity and liabilities Ordinary share capital Retained earnings Long-term loan (15% p.a.) Accounts payable Other current liabilities R 2 200 000 1 050 000 332 000 67 500 2019 2018 R R 1980 000 1 600 000 300 000 500 000 388 000 350 000 184 000 2 852 000 50 000 2 500 000 704 000 600 000 806 000 700 000 420 000 450 000 480 000 300 000 442 000 450 000 2 852 000 2 500 000 Additional information 1. All purchases and sales of inventories were on credit. Purchases for the year ended 31 December 2019 amounted to R2 000 000. 2. Credit terms are as follows: 2.1 Debtors: 30 days 2.2 Creditors: 90 days Guidelines: All answers must be typed out and workings must be showing.