All non$-$current assets are listed at net book value on the statement of finariclat

position.

The interest on the company's loans is pegged at the central bank lending rate

plus $2\%.$ This means that anylime interest rates increase, the interest on the

loan also increases.

Due to financial difficulties and the economic crisis, ordinary shareholders have

not been paid any dividends in the last two years. As a result, some

shareholders have begun selling off their shares.

The company expects sales to fall by $10\%$ in the year to October $31,2024.$

The current interest rate on the overdraft facility is $10\%$ per annum.

The trade creditors of the company are threatening to reduce the level of credit

allowed to $30$ days outstanding as they are worried about being able to collect

what is due to them.

The company is considering other sources to help bridge the gap in trade

payables.

Required:

a$.$ Using gross margin and ROCE, comment on the profitability of

$(10$ marks$)$

Afrifa Ltd$.$ In your answer reflect on the impact the current

economic conditions in the UK may be having on the company.

b$.$ Using current and cash ratios, comment on the liquidity

$(10$ marks$)$

position of Afrifa Lid. In your answer reflect on the impact the

current economic conditions in the UK may be having on the

company.

c$.$ Calculate the amount of finance required to reduce trade

$(8$ marks$)$

payables, from the level shown on the statement of finaricial

position to an average of $30$ days outstanding.

d$.$ Using the information provided, discuss with appropriate ratios

$(12$ marks$)$

four options available for Afrifa Ltd for addressing the

impending issues with its creditors.