The Managing Director of a Trading Company, has just received summary sets of Financial Statements for last year and this year. Trading Company Income Statements for years ended December 31 last year and this year Last year $ This year $ Sales Revenue 1,800,000 1,920,000 Cost of Goods Sold: Beginning Inventories 160,000 200,000 Purchases 1,120.000 1.175.000 Cost of Goods Available for Sales 1,280,000 1,375,000 Ending Inventories (200,000) (250,000) Cost of Goods Sold (1,080,000 (1,125,000) Gross Margin/Profit 720,000 795,000 Expenses (680,000) (750,000) Net Income/Profit 40,000 45,000 Balance Sheets as at December 31 last year and this year Last year $ This year $ Assets: Current Assets: Cash 4,000 2,000 Trade Receivables 375,000 480,000 Inventories 200.000 250.000 Total Current Assets 579,000 732,000 Non-Current Assets 950.000 930.000 Total Assets 1,529,000 1,662,000 Liabilities: Current Liabilities Trade Payables 195,000 225,000 Stockholders' Equity: Common Stock $1 par value 825,000 883,000 Retained Earnings 509,000 554.000 Total SHE 1.334,000 1.437.000 Total Liabilities and SHE 1,529,000 1,662,000 The Finance Director has expressed concern at the increase in Inventories and Trade Receivables levels. (a) Show, by using the data given, how you would calculate ratios that could be used to measure Inventories and Trade Receivables levels during last and this year; comment on Profit Margin for both years; (2 marks)