Question 8 The following accounting information and financial ratios of M Limited relate to the year ended 31st March, 2016: Inventory Turnover Ratio 6 Times Creditors Turnover Ratio 10 Times Debtors Turnover Ratio 8 Times Current Ratio 2.4 Gross Profit Ratio 25% Total sales 30,00,000; cash sales 25% of credit sales; cash purchases 2,30,000; working capital * 2,80,000; closing inventory is * 80,000 more than opening inventory. You are required to calculate (i) Average Inventory (ii) Purchases (iii) Average Debtors (iv) Average Creditors (v) Average Payment Period (vi) Average Collection Period (vii) Current Assets (viii) Current Liabilities