You learn below from the annual report of HS TWO Limited:

HS TWO Limited

Extract of Statement of Profit or Loss

For the years ended 31 December 2017 to 2019

Year 2019 Year 2018 Year 2017

$$$

Sales revenue 20,422 20,200 20,000

Less: Cost of goods sold (16,746) (16,766) (16,600)

Gross profit 3,676 3,434 3,400

HS TWO Limited

Extract of Statement of Financial Position

As at 31 December 2017, 2018 and 2019

31.12.2019 31.12.2018 31.12.2017

ASSETS $ $ $

Inventory 1,390 1,308 1,300

Accounts receivable 1,295 1,269 1,200

Cash 800 800 800

Required:

1. (a) Calculate below for 2018:

   1. (i) Average days to sell inventory.

   2. (ii) Average receivable collection period.

2. (b) Calculate below for 2019:

   1. (i) Average days to sell inventory.

   2. (ii) Average receivable collection period.

(6 marks)

(6 marks)