QUESTION ONE $(21$ MARKS$)$

You are the financial manager of $xYZ($Pty$)$ Ltd and have been requested by the board of directors to prepare and comment on some ratios. The company has a $29/28$ February year end.

Extracts from the statement of financial position:

$\backslash$table$[[,$Notes,$2024,2023],[$Inventories$,1,$R$^(\text{'})000,$R$^(\text{'})000],[$Trade and other receivables,,$500,300],[$Cash and cash equivalents,$450,420,],[$Trade and other payables,$650,80,],[,325,300,],[$Extracts from the statement of profit or loss,,,$],[$Revenue$,2,3000,1850],[$Cost of sales,$3,2000,1800]]$

Notes:

Inventory on hand at $28$ February $2022$ was R$150000$

Credit sales are $50\%$ of revenue.

All purchase of inventory is on credit.

Additional information

Use $365$ days

Do not use averages.

$\backslash$table$[[$REQUIRED:$,$Marks$],[$Sub$-$total,Total$],[\backslash$table$[[1.$ Calculate purchases for the years ended $29$ February $2024],[$and $28$ February $2023]],6,6],[\backslash$table$[[2.$ Calculate and comment on the following ratios:$],[$a$)$ Inventory days$],[$b$)$ Debtor's collection period$],[$c$)$ Creditors payment period$]],\backslash$table$[[\backslash$table$[[5],[5],[5]]]],15],[$TOTAL$,,21]]$