question is in the file below
Details $ Fixed Assets 11,500,000 Gross profit 14,000,000 Accounts receivable 3,500,000 Stock, January 1, 2020 5,000,000 Operating expenses 6,000,000 Accounts payable 2,000,000 Net purchases 12,000,000 Net sales 24,000,000 Cash at bank & in hand 7,500,000 Cost of sales 10,000,000 Stock, December 31, 2020 7,000,000 Net profit 8,000,000 DQ2- Your are required to answer all three (3 ) questions below The following information was extracted from the books of Bogart Ltd for the financial year ending December 31, 2020: 1. State the formulae for the following ratios and calculate the ratios using the information from the financial statement extract above. (a) Gross profit percentage (b) Net profit percentage (c) Current ratio (d) Liquid ratio (e) Average stock (f) Inventory turnover (g) Working capital (h) Debtors collection period 2. Explain the purpose of the liquidity ratio and state two ratios that may be use to measures the liquidity of a company. 3. Explain the purpose of the profitability ratio and state two ratios that may be use to measures the profitability of a company.