all Optus 9:09 AM 22% BAP42 A T3 2020 FEX 3abhishek QUESTION 3 (20%) The following information is an extract from PLANTATION Ltd.'s financial statements for the 2019-2020 financial year. Average Inventory $650,000 Average Net receivables $450,000 Net credit sales $1,500,000 Current assets $950,000 Non-current assets $750,000 Account payable $400,000 Bank Bill (Short term) $370,000 Long Term debt $350,000 Ordinary equity $950,000 Net operating income $705,300 Cost of goods sold $350,000 Interest expense $ 55,000 Tax rate 30% Industry Benchmark (Average) Ratios Current ratio 21 Receivable lumover 7 to 10 times Average age of receivaties 39 days Inventory Tumover 9 times Debt-to-equity 1.52 Nel working capita Positive Reumon 7.975 Retum only 9.08 Required: Calculate the following ratios and compare your results with industry benchmark stated above: Current ratio: Current assets/Current liabilities b) Receivable turnover: Total Credit Sales / Average Accounts Receivable Average age of receivables: (Accounts Receivable 365) / Sales Revenue Imunnton, Turnur Salor / Inyonton . ... Optus 9:10 AM 22% BAP42 A T3 2020 FEX 3abhishek Ordinary equity $950,000 Net operating income $705,300 Cost of goods sold $350,000 Interest expense $ 55,000 Tax rate 30% Ratios Industry Benchmark (Average Current ratio Receivable gumover Average age of receivables 39 days Inventory Turnover times Debt-to-equity 152 Networking capital Positive Retum on assets 7.97 Reumoneguty 9.00 Required: Calculate the following ratios and compare your results with industry benchmark stated above: Current ratio: Current assets/Current liabilities Receivable turnover: Total Credit Sales / Average Accounts Receivable Average age of receivables: (Accounts Receivable 365) / Sales Revenue Inventory Turnover. Sales / Inventory Debt-to-equity ratio: Total Debts / Total Equity Net working capital: Current Assets - Current Liability Return on assets: Net Income / Average Total Assets Return on equity: Net Income / Average Shareholders Equity Use the following template to answer your calculation, compare the result with Industry average and Interpretation of your result. Ratio formula Compare with interpretation (with calculation Industry Average