Question: Question 2 - This question has 2 parts (6 marks) [3 + 3) = 6 marks SpotSpot Pty. Ltd.s most recent summary of key financial

Question 2 - This question has 2 parts (6 marks) [3

Question 2 - This question has 2 parts (6 marks) [3 + 3) = 6 marks SpotSpot Pty. Ltd.s most recent summary of key financial information as presented below: Financial Ratios 2019 2020 Current Ratio 1.3:1 2.0:1 Quick Ratio 1.4:1 0.9:1 Accounts Receivable Turnover 6.8 times 8.4 times Inventory Turnover 3.8 times 2.6 times Return on Assets 9.7 cents 12.4 cents Return on Equity 10.2 cents 13 cents Required: (a) Is the 2020 inventory turnover ratio for SpotSpot Pty. Ltd. a progress or a regress? Explain your answer. [3 marks] (b) Is the 2020 accounts receivable turnover ratio for SpotSpot Pty. Ltd. a progress or a regress? Explain your answer. [3 marks]

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