The following information is given for Neehas business for the year ended 31 December 2020:

Sales	375,000
Inventory at 1 January 2020	18,600
Inventory at 31 December 2020	17,400
Purchases	105,000
Gross Profit	268,800
Operating Expenses	126,900
Non-Current Assets	300,000
Trade Receivables	21,000
Trade Payables	24,000
Bank Overdraft	3,600
Capital at 1 Jan 2020	213,000
Drawings	24,000

Use the information above in answering questions 1, 2 and 3

What is the gross profit margin for the year ended 31 December 2020?

71.68%

32.88%

37.84%

None of the above

4 Marks

2. What is the current ratio for the year ended 31 December 2020?

0.65:1

1.39:1

0.76:1

None of the above