You are to study the following financial statements for X stores and then answer the questions which follow. Note. 90% of sales are on credit and all purchases are on credit. Financial Statements P P Profit and loss accounts Sales 555,000 Less Cost of goods sold Opening stock 100,000 Add Purchases 200,000 300,000 Less Closing stock (60,000) (240,000) Gross profit 315,000 Less Depreciation 5,000 Balance sheets Fixed assets Equipment at cost 50,000 Less Depreciation to date ( 40,000) 10,000 Current assets Stock 60,000 Debtors 125,000 Bank 25,000 210,000 Less Current liabilities Creditors (104,000) 106,000 116,000 Financed by: Capitals Balance at start of year 76,000 Add Net profit 100,000 176,000 Less Drawings (60,000) 116,000 Required: a. Calculate the following ratios for X: i. Gross Profit Ratio (2 marks) ii. Return on assets (2 marks) iii. Stock turnover ratio (3 marks) iv. Current Ratio (2 marks) v. Acid test Ratio (3 marks) vi. Return on equity (3 marks) vii. Trade debtors collection period (2 marks) b Discuss any two-investment ratios. (6 marks) viii. Debt collection period (2 marks) Wages, salaries and commission 165,000 Other expenses 45,000 (215,000) Net profit 100,000