B Instructions: Answer any TWO (2) questions from this section. Question 1 Financial Data for Natural Products Co. as of December 31, 2011: Inventory $300,000 Cash 280.000 Accounts receivable 325,000 Marketable securities 800,000 Long-term debt 500.000 Net sales (all credit) 1.800.000 Common stock 900,000 Interest expense 25,000 Operating expense (incl. depr. exp. and taxes) 625.000 Accumulated depreciation 450,000 Cost of goods sold 1,100,000 Plant and equipment 1,400,000 Notes payable-current Accounts payable 200,000 180.000 Accrued wages Retained earnings 45,000 190.000 From the information presented in the above table, calculate the following ratios for the Natural Products Co. i. current ratio ii. acid test ratio iii. average collection period iv. inventory turnover V. gross profit margin vi. operating profit margin vii. net profit margin vii. total asset turnover 1) Payables turnover period vi) Cash operating cycle Vii) How could the firm redua its period? The Council of Community Colleges of Jamaica collection (5 marks) (3 marks) (3 marks) (2 marks) (2 marks). (4 marks) (4 marks) (2 marks) (Total 25 marks) Page 14