b) Current ratio = Current assets / Current liabilities [2 marks] Interpret your results [1 mark] c) Quick ratio = [Current assets - (inventory + other less liquid items)]/Current liabilities [2 marks] Interpret your results [1 mark] d) [2 marks] Inventory turnover = Cost of Goods sold / Average inventory Interpret your results [1 mark] e) Accounts Receivable turnover = Credit sales / Accounts Receivable [2 marks] Interpret your results [1 mark] Accounts payable turnover = Credit purchases / Accounts Payable (All purchases are on credit) [2.5 marks] Interpret your results [1 mark] What is the cash conversion cycle of the company? [1.5 marks] [20 marks] f) g) Based on the following trial balance, answer the following questions: Hyten Enterprise Trial Balance as at 31/12/2021 Accounts Dr. (RM) 7,700 Cash Capital 5,000 Furniture 31,000 Office Equipment 18,400 Accounts payables 6,570 Inventory 5,800 Sales 89,000 7,900 Accounts receivables Depreciation: Furniture 100 Depreciation: Equipment 200 100 Accumulated depreciation: Furniture Accumulated depreciation: Equipment 200 Salary 2,000 Utilities 300 Accrued interest 130 Selling and distribution expenses 5,000 Advertisement 5,000 Cost of goods sold 17,000 General expenses 600 Total 101,000 101,000 Other information: 1) The closing inventory for 31/12/2021 are RM6,000. Other information: Credit sales is 20% of total sales. 2) 3) Purchases is equal to Ending inventory plus the Cost of goods sold and minus the Beginning inventory. Based on financial year 2021, analyse the following: a) Net working capital = Current assets - current liability [2 marks] Interpret your result [1 mark] Page 2 of 5 Cr. (RM)