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Calculations (Book exercise 6.4) Assume that: - All sales and purchases and made on credit. - At the start of the year before last: Inventory was 95,000 Trade receivables were 85,000 Trade payables were 45,000 (a) Calculate the following financial ratios for both years (using year-end figures for statement of financial position items): returnoncapitalemployed(&ROSF)grossprofitmarginacidtestratiosettlementperiodfortradepayables-operatingprofitmargin-currentratio-settlementperiodfortradereceivables-inventoriesturnoverperiod. (b) Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms. Discussion: Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms. [See book appendix D for solutions] Calculations (Book exercise 6.4) Assume that: - All sales and purchases and made on credit. - At the start of the year before last: Inventory was 95,000 Trade receivables were 85,000 Trade payables were 45,000 (a) Calculate the following financial ratios for both years (using year-end figures for statement of financial position items): returnoncapitalemployed(&ROSF)grossprofitmarginacidtestratiosettlementperiodfortradepayables-operatingprofitmargin-currentratio-settlementperiodfortradereceivables-inventoriesturnoverperiod. (b) Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms. Discussion: Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms. [See book appendix D for solutions]