RM	RM
Sales (-) Cost of sales: Opening inventory (+) Purchases (-) Closing inventory Gross Profit (+) Revenues: Discount received Commission received (-) Expenses: Salaries and wages Repair and maintenance Net Profit	25,000 200,000 (15,000) 10,000 8,300 41,300 100,000	450,000 (210,000) 240,000 18,300 (141,300) 117,000

Statement of Financial Position as at 31 December 2018
	RM	RM
Non-current Assets Building Motor vehicles Current Assets Inventory Account receivables Bank Cash Financed by: Owners equity Capital (+) Net profit (-) Drawing Non-current Liabilities Long-term loan Current Liabilities Account payable	200,000 70,600 15,000 46,500 30,150 10,500 130,000 117,000 (10,650)	270,600 102,150 372,750 236,350 95,000 _41,000 372,750

Required:

1. Calculate the following ratios:

1. Current ratio
2. Quick ratio
3. Inventory turnover ratio
4. Average collection period
5. Gross profit margin
6. Net profit margin

(24 marks)

2. Give interpretation for each of the above ratios

(6 marks)