# Taking data of Examples 7 and 8, calculate the following activity ratios: 1. Inventory turnover ratio 2.

## Question:

Taking data of Examples 7 and 8, calculate the following activity ratios:

1. Inventory turnover ratio

2. Average inventory holding period

3. Average debt collection period

4. Average payables period

5. Fixed assets turnover ratio

**Data from Example 7**

The following is the profit and loss account and balance sheet of Sach International Ltd. Redraft these for the purpose of ratio analysis and calculate profitability ratios based on sales.

**Data from Example 8**

By using the income statement of Example 7 and the following balance sheet, calculate investment-based profitability ratios.

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**