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Vee-Jay Company (Pty) Ltd Extracted the following Ratios from its books for the year 2020...

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Accounting

Vee-Jay Company (Pty) Ltd Extracted the following Ratios from its books for the year 2020 together with the relevant industry averages.

RATIOS 2020 Industry average 1. Current Ratio 1,9 2

2. Acid test ratio 0,8 1

3. Inventory Turnover 4 times 6 times

4. Debtors collection period (days) 51 days 40 days

5 Creditors payment period (days) 61 days 50 days

Required:

1.For each of the above five ratios, answer the following: a. what does the ratio measure

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