The following is an extract from the trial balance of Greatness (Pty) Limited on 30 June 2022

Cash and cash equivalents	46 000
Debtors	103 000
Inventory balance (30 June 2021 R191 000)	209 000
Prepaid expenses	20 000
Furniture and equipment	55 000
Land and buildings	57 000
Investments (40 000 shares of R1 each in Solly Limited at a cost price)	50 000
Creditors	105 000
Taxation payable	55 000
Shareholders for dividends	50 000
15% long term loan	210 000
Share capital
Ordinary share capital including premium	225 000
Preference share capital	100 000
Retained profit	100 000
Balance of the previous year	80 000
Plus: Retained for the year	20 000

Additional information

1. Issue share capital:

• 200 000 ordinary shares of R1 each.
• 20 000 10% preference shares R5 each.

1. Gross profit for the year amounted to R672 000, representing 40% of the turnover for the year.
2. Income from investment for the year amounted to R12 000.
3. All sales and all purchases are on credit.
4. The item shareholders for dividends represents the total amount of dividends declared on ordinary shares for the year.
5. All preference dividends were paid up to date. No further distribution of profit other than dividends was made during the year.
6. There was no change in the amounts of the long-term loans for the year.

Calculate the following ratios in respect of the year ended 30 June 2022. Round off to two figures after the decimal point. Assume that a year = 365 days

a) Acid test ratio. (2)

b) Current ratio. (2)

c) Ordinary dividends in cents per share. (2)

d) Accounts Receivable collection period. (2)

e) Accounts Payable payment period. (2)

f) Inventory turnover. (2)

g) Explain in your own words the difference between liquidity and profitability.(3)