The financial accountant of High-Tex Limited has prepared the financial statements for the financial year 2019. Use the financial information provided to:

FinancialRatios	Formula
Return on assets (ROA)	= Profit / Total assets x 100%
Return on equity (ROE)	= Profit / Average owners equity x 100%
Profit margin	= Profit / Sales x 100%
Gross profit margin	= (Sales - cost of sales) / sales x 100%
Inventory turnover	= cost of Sales / Average inventory
Debtors turnover	= Sales / Average accounts receivable

High-Tex Limited
Income Statement for the year ending 30 June
	2019 ($000)	2018 ($000)
Revenue - computer	9,600	8,250
Revenue - software	1,600	1,700
Total operating revenue	11,200	9,950
Cost of sales	5,720	5,205
Gross profit	5,480	4,745
Administration expense	1,250	950
Wages expense	650	510
Depreciation expense	225	225
Other expenses	480	435
Earnings before interest and tax	2,875	2,625
Interest expense	455	525
Profit before tax	2,420	2,100
Income tax expense	726	630
Profit for the period from continuing operations	1,694	1,470

High-Tex Limited
Balance Sheet as at 30 June
	2,019 ($000)	2,018 ($000)
Current assets
Cash	1,450	2155
Accounts receivable	1455	1,045
Inventories	755	980
Total current assets	3,660	4,180
Non-current assets
Property, plant and equipment	6,780	7,150
Intangible assets	550	451
Total non-current assets	7,330	7,601
Total assets	10,990	11,781
Current liabilities
Accounts payable	735	1145
Income tax payable	650	685
Accrued expenses	815	995
Total current liabilities	2,200	2,825
Non-current liabilities
Bank loans	3,700	4,100
Provisions	585	415
Total non-current liabilities	4,285	4,515
Total liabilities	6,485	7,340
Net assets	4,505	4,441
Equity
Share capital	2,000	2,000
Retained earnings	2,505	2,441
Total Equity	4,505	4,441

Additional information:

The total equity as at 30 June 2017 is $4,185,000.

The inventory as at 30 June 2017 is $915,000.

The accounts receivable as at 30 June 2017 is $1,055,000.

REQUIRED

Calculate the following efficiency ratios (Inventory and Debtors Turnover) (Keep 2 decimal places, 2 Marks):

Discuss the changes in inventory turnover (0.5 mark).

Discuss the changes in debtors turnover (0.5 mark):