Starl manufactures televisions and sells them to large retailers. Due to high staff turnover, no liquidity ratios have been calculated for the year ahead. The bank is concerned about the forecast increase in Starl company's overdraft to $40,500 at 30 November 2019, and has suggested that the ratios be calculated. The following forecast information is available for the year ended 30 November 2019. Revenue $343,275 Cost of sales $284,000 Purchases $375,000 Closing inventory $35,000 Receivables Payables Required: $37,400 $35,410 A. For Starl company calculate the following ratios: 1. Inventory holding period _days 2. The receivables collection period days 3. The payables period days 4. The current ratio Note: Perform your calculations for 1, 2 and 3 to the nearest day and assume that there are 365 days in a year. Perform your calculations for 4 to 3 decimal places. B. Starl Co's quick ratio is 0.49. If they sell half of their inventories to pay off part of the bank overdraft, what will happen to their quick ratio? C. In an attempt to increase their liquidity position, Starl Co is considering an early settlement discount to its customers. Which two of the following outcomes may occur as a result of offering the early settlement discount? a. Sales increase b. Receivables decrease c. Administration cost decrease d. Bad debts increase