You are the senior audit manager of Natio. Independent Accountants Firm (Nafip), you are now carrying out the analytical procedures for the financial statements of Rabita Cosmetic Ltd., Co (Rabita). Rabita is a local private electronic products manufacturer. The following were its draft financial statements for the latest two financial years. Draft Statement of profit or loss for the year ended 30 September, 2018 2017 2018 $000 $000 Revenue 1204 1402 Cost of sales (865) (1201) Gross profit 339 201 Interest expenses (13) (42) Operating expenses (130) (132) Administration (124) (122) expenses Net profit 84 (95) Draft Statement of financial position of 30 September 2018 2017 2018 $000 $000 $000 $000 Non-current assets Tangible non-current 500 400 assets 500 400 Current assets Inventory 203 343 Trade receivable 80 198 Cash in bank 54 4 337 545 Total Assets 837 945 Capital and reserves Share capital Retained earnings 300 100 300 5 305 400 Current liabilities Bank overdraft Trade payable 0 80 185 65 65 265 Non-current liabilities Bank loan 372 375 372 375 L Capital and 837 945 Total Liabilities 2016 2017 Ratio Gross profit Gross profit/Sales margin Inventory Closing inventory/Cost of sales *365 turnover days AR collection AR/Sales*365 days AP payment AP/Cost of sales*365 days Interest EBIT/Interest payable cover Current ratio Current assets/Current liabilities (Current assets- inventory)/Current liabilities Quick Ratio