The trial balance of Juan, after preparing the trading account section of the income statement, was as follows: Juan Trial Balance at 30 April 2017 Dr Cr $ $ Gross profit 60000 General expenses 25000 Non-current assets Cost 40000 Provision for depreciation 13000 Bank 25000 Trade receivables 15000 Trade payables 32000 Inventory at 30 April 2017 60000 Capital 10000 140000 140000 Additional information for the year ended 30 April 2017 1 Mark-up on cost of sales was 20%. 2 Depreciation on non-current assets for the year was $8000 and is yet to be provided. REQUIRED (a) Calculate the:

1. (a)(i)Revenue[2]
2. (a)(ii)Profit for the year[2]
3. (a)(iii)Working capital[2]
4. (b)Calculate the following ratios correct to two decimal places. Workings Answer Percentage of profit for the year to revenue (profit margin) Working capital ratio (current ratio) Quick ratio (acid test ratio)[6]
5. (c)Explain to Juan why the quick ratio (acid test ratio) is a better measure of liquidity than the working capital ratio (current ratio).[2]
6. (d)Comment upon the sufficiency of Juan's liquidity level. Explain the reason for your comment. Comment Reason[3]
7. (e)Suggest three ways in which Juan might increase his bank balance. 1 2.. 3...[3]