Jayden is in business buying and selling goods on credit. The following information is available for the month of March 2019. $ Balance at 1 March 2019 Inventory 40000 Total for the month of March 2019 Cost of sales 77000 Balances at 31 March 2019 Inventory 30000 Bank overdraft 25000 Trade payables 75000 Trade receivables 60000 On 1 April 2019 Jayden decided to introduce a new marketing policy. He decided to: decrease his mark-up to 50% to increase his sales revenue offer trade receivables a cash discount for early payment. Jayden hoped to end the month with a positive bank balance. The summarised transactions for the month of April 2019 were: $ Credit purchases 115000 Credit sales 180000 Paid to trade payables by cheque 135000 Paid for expenses by cheque 50000 Received from trade receivables by cheque 200000 after deducting $5000 cash discount

1. (a)Calculate the following ratios to one decimal place. The previous month's ratios are shown in the last column. Workings March 2019 February 2019 Rate of turnover of inventory 1.4 times Working capital ratio (current ratio) 1.3:1 Quick ratio (acid test ratio) 0.9:1[6]
2. (b)Comment on the ability of Jayden to pay the trade payables.[2]
3. (c)Calculate the following at 30 April 2019. Workings Answer $ Inventory Trade receivables Trade payables Bank[8]
4. (d)Comment on the success of Jayden's new marketing policy. Support your answer by considering the effect on his current assets and current liabilities.[4]