(a) The inventory and sales data for the current year for Sendai Enterprise Required: Using the above data, compute and interpret the following financial ratio: i. The account receivable average collection period ii. The inventory turnover (4 marks) (4 marks) (b) Besides the management, shareholders and creditors are two other users that would be interested in profitability ratio. Explain the reasons that analysis of profits is of vital concern to shareholders and creditors. (6 marks) Flex Com Bhd recorded the following profits figures in 2020 to 2022. Required: i. Compute the gross profit margin for 2020 to 2022 . (3 marks) ii. Compute the operating income margin for 2020 to 2022. (2 marks) iii. Explain on the trend in profitability of Flex Com Bhd. Based on your computation in (i) and (ii) above. iv. The guideline or the minimum acid-test ratio is 1.00. However, the comparison with past ratios and within industry averages is still necessary. Support this statement with your knowledge. (4 marks) END OF QUESTION PAPER