Question 2 (15 marks) Selected information from the comparative financial statements of Lahaina Snorkelling Pty Ltd for the year ended 31 December 2020 is presented below. As their accountant, you have been asked to calculate a number of ratios and comment on the profitability of the business. 2020 2019 Accounts receivable (net) $ 220 000 $260 000 Inventory 90 000 80 000 Other assets 340 000 260 000 Total assets 650 000 600 000 Current liabilities 140 000 220 000 Non-current liabilities 200 000 230 000 Net credit sales 780 000 750 000 Cost of Sales 380 000 430 000 Total expenses 50 000 35 000 Net profit 250 000 195 000 Net cash provided by operating activities 240 000 235 000 Required: a) Calculate the following ratios for 2020 (to 1 decimal place). i. Inventory turnover ratio. (2 marks) ii. Average days in inventory. (2 marks) iii. Debt ratio. (2 marks) iv. Return on assets ratio. (2 marks) Receivables turnover ratio (2 marks) vi. Profit margin ratio (2 marks) V. b) Interpret and comment on the average days in inventory ratio