1. The following amounts have been extracted from the accounts of Sapphire Ltd for the year ended 31 December 2020:

	$000
Sales (all credit)	860
Inventory at 1 January 2020	100
Purchases (all on credit)	625
Inventory at 31 December 2020	76
Accounts receivable	120
Prepaid expenses	8
Cash in hand	12
Bank overdraft	16
Accounts payable	80
Short-term loans	6
Proposed dividends	10

Calculate and show your working clearly:

1. What is the gross profit margin of Sapphire Ltd for 2020?
2. What is the inventory turnover period of Sapphire XY Ltd for 2020?
3. What is the current assets ratio of Sapphire XY Ltd at 31 December 2020?
4. What is the acid test ratio of Sapphire XY Ltd at 31 December 2020?