Summary information from the 2018 statement of profit or loss of Coconut Plantations Pty Ltd is provided below.

The operating expenses include $18,000 of interest expense.
The following amounts have been extracted from the company’s balance sheets.

Required
a. Calculate and interpret the following:
i. Days inventory turnover iv. quick ratio
ii. Days debtors v. gross profit margin
iii. Current ratio vi. profit (after tax) margin
b. If you are contemplating providing a short-term loan to Coconut Plantations Pty Ltd discuss what these ratios reveal about the associated risk.

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Sales revenue Cost of sales Gross profit Other income Operating expenses Profit (before tax) Income tax Profit (after tax) $1675 000 1 025 000 650 000 1 500 315 000 $ 336 500 100 950 $ 235 550