The trial balance of Miyanda Traders, after the calculation of the gross profit, was as follows:

Dr (K)	Cr (K)
Gross profit	120 000
Sundry expenses	57 000
Non-current assets (cost)	400 000
Non-current assets (provision for depreciation)	82 000
Trade receivables	55 000
Trade payables	85 000
Inventory at 31 December 2019	125 000
Cash	5 000
Bank loan (repayable 31 January 2020)	35 000
Capital	320 000
642 000	642 000

7 Additional information for the year ended 31 December 2019: 1. Mark-up on cost of sales, 25%. 2. Depreciation for the year on non-current assets, K15 000. Required (a) Calculate the following for the year ended 31 December 2019:

(i) (ii) (iii) (iv)	Revenue (sales) Net profit ratio Return on Capital Employed ratio Quick ratio (acid test)	[2 Marks] [2 Marks] [2 Marks] [2 Marks]
(b) Explain to Miyanda why the quick ratio (acid test) is a better measure of liquidity
than the working capital ratio (current ratio). Marks]	[4
(c) Comment upon the adequacy of Miyandas cash for the next three months. Give one
reason for your comment.	[4 Marks]

(d) Suggest four ways in which Miyanda might increase the cash in the business. [4 Marks]