Answer Happy

£(000)
£(000)
2018
2017
Statement of financial position
Current assets:
Inventories
370
345
Trade receivables
290
270
Loans
55
15
Bank
80
70
Cash
150
165
Total current assets
945
865
Total current liabilities
590
610
Statement of income
Revenue
5,860
5,130
The comparative financial statements of Paradise Cosmetic Supplies Ltd. for 2018 and 2017 include the following select data: i (Click the icon to view the comparative financial data.) Requirement 1: Compute these ratios for 2018 and 2017: a. Current ratio b. Acid-test ratio C. Settlement period for trade receivables Requirement 2: Which ratios improved from 2017 to 2018 and which ratios deteriorated? How does this trend affect the company? Requirement 1: a. Calculate the current ratio. (Round your final answer to 2 decimal places. If an answer is less than 1, place a '0' in front of the decimal point.) 2017 2018 1 Current ratio = :1 b. Calculate the acid-test ratio. (Round your final answer to 2 decimal places. If an answer is less than 1, place a '0' in front of the decimal point.) 2018 2017 1 Acid-test ratio = c. Next calculate the settlement period for trade receivables. (Round all calculations to the nearest complete day. Use year end figures for consistency) 2018 2017 Settlement period for trade receivables = Requirement 2: The three ratios the company. days days from 2017 to 2018. This trend