28. The trading account of Kappa for the year ended 30 June 20X0 is set out below:
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $
430,000
Sales
Opening inventories                                                                           50,000
Purchases                                                                                            312,500
Closing inventories                                                                            (38,000)
–––––––
Cost of sales                                                                                                                            (324,500)
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Gross profit                                                                                                                              105,500
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The following amounts have been extracted from the company’s statement of financial position at 30 June 20X0.
$
Trade receivables                                         60,000
Prepayments                                                 4,000
Cash in hand                                                   6,000
Bank overdraft                                              8,000
Trade payables                                            40,000
Accruals                                                           3,000
Declared dividends                                       5,000
Which one of the following correctly gives the inventories days (using average inventories) and the current ratio for Kappa Ltd for the period?
Inventory days             Current ratio
A            49 days              93:1
B            33 days                          25:1
C            33 days                          93:1
D            49 days             25:1