(a)[8]
Calculate the ratios listed below. Show your working: profit margin; trade payables turnover (days); trade receivables turnover (days); liquid ratio.
(b)[5]
Advise Adit on whether he ought to postpone paying trade payables so as to cut the bank overdraft. Support your answer by referring to the effect on both the bank balance and the trade payables.
(c)[3]
Suggest three other ways in which Adit could reduce the bank overdraft.
(d(i))[2]
State two reasons Adit should prepare an annual income statement.
(d(ii))[2]
State two reasons Adit should use the money measurement principle.