Use the following financial statements in answering questions 6, 7 and 8:

Fly Limited

Income statement for the year ended 31 March 2014

	000
Revenue	7,215
Cost of sales	6,450
Gross profit	765
Operating expenses	285
Operating profit	480
Finance (interest) expense	120
Profit before tax	360
Taxation	105
Profit for current year	255

Statement of Financial Position as at 31 March 2014

Non-current assets	1,305
Current assets
Inventory	2,640
Trade receivables	1,890
Cash and cash equivalents	8
	4,538
Total Assets	5,843
Current liabilities
Trade payables	2,055
Taxation payable	105
Bank overdraft	1,005
	3,165
Non-current liabilities
Loan	300
Equity
Ordinary share capital	825
Share premium account	142
Retained earnings (total)	1,411
Total Equity	2,378
Equity and Total Liabilities	5,843

6. Based on the above financial statements for Fly Ltd, what is the operating profit margin for the year ended 31 March 2014?

1. 9.52%

(b) 6.65%

(c) 15.90%

(d) None of the above

7. Based on the above financial statements for Fly Ltd, what is the Acid testratio for the year ended 31 March 2014?

1. 0.80 : 1
2. 1.57 : 1
3. 1.43 : 1
4. None of the above

8.Based on the above financial statements for Fly Ltd, what are the tradepayables days at 31 March 2014 (to the nearest whole days)?

(a) 116 days

2. 124 days
3. 56 days
4. None of the above.