Omer is a trader. He provided the following information. For the year ended 30 April 2021 $ Credit sales 191000 Credit purchases 120000 Gross profit 80220 Commission receivable 20280 Expenses 29830 At 30 April 2021 Trade receivables 12400 Trade payables 7000 REQUIRED

1. (a)Calculate the following ratios. Trade receivables turnover (days) workings answer (round up to next whole day) Trade payables turnover (days) workings answer (round up to next whole day)[4]
2. (b)(i)Suggest two reasons for the difference in the trade receivables turnover of the two businesses.[2]
3. (b)(ii)Suggest two reasons for the difference in the trade payables turnover of the two businesses.[2]
4. (c)Advise Omer whether or not he should employ a marketing manager. Justify your answer. You may include reference to the possible effects on the income and expenses of the business.[5]
5. (d)State three ways by which Omer could reduce the possibility of irrecoverable debts.[3]
6. (e)State why Omer should apply each of the following accounting principles. Matching Prudence Consistency Business entity[4]

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