Case Study ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio c) Accounts Receivable Turnover ) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points) Based on the ratios calculated above. Can you conclude if any bank would easily give a loan to you? Justify your answer. [2 points) Standalone statement of comprehensive income Year rounded the 2019 2018 AED ARD 13 7215 214125 18.0940 Rev Carles | Gromprudle Administrative and depe Revel of immer www Cherating profil 14 15 (10.1874013 7. 11.16 DAT 67553016 18 1 1.0.0 5415 Femme Finde Profile for the year Other competitor for the year Total comprese income for the year THE 67011 ZO OG Standalone statement of financial position AR Note AED AID ASSETS Ne current Property and equipment Investments is where 4 21.95 1.452 2.3565 1.213.95 Cerra Ime Trade and other Dermed Lontoret Cash and has been 1794 12 11 SCO 14,03 3 3345. 24 19.497 303 3101 2631 4072517015 an Total Standalone statement of comprehensive income Year ended 31 December 2018 AED AED 2019 Note 13 967,215 339 (62.141 258) 105,074,081 $13.481 899 (222094 232) 91.387.657 Revenue Cost of sales Gross profit Administrative and selling expenses Reversal of (provision for impairment of trade receivables Operating profil 14 15 (30,183,413) 978,095 (27340 230) 11 221.851 6 416721 10,036 546 7, 716222) 67353.016 Finance cost Finance income Finance cost.net 18 18 18 (1.0979223 1.146 (1.096, 776) 3.SE (541.50 78,939.770 67011476 Profit for the year Other comprehensive income for the year Total comprehensive income for the year 78.939770 67011676 Standalone statement of financial position As at 31 December 2019 2015 AED AED Note ASSETS Non-current asset Property and equipment Investments in subsidiaries 4 1,012,984 1,343 582 2.356556 1,213,595 1.213.595 Current assets Inventories Trade and other receivables Due from related parties Loan to related parties Cash and bank balances 5 6 11 11 7 179,413,089 121,670,892 80,115.253 26,318,739 407,517,973 409874519 5.529,691 193.441.503 52.580.867 33,455.659 24349497 309,357213 310.570 808 Total assets EQUITY AND LIABILITIES EQUITY Share capital Retained earings Total equity 3,900,000 358,743.239 362.64 219 3.900.000 279.803.469 283.203.400 LIABILITIES Non-current liabilities Provision for employees' end of service benefits 9 355.755 355.75 Current liabilities Trade and other payables Due to a related party Bank borrowings 10 11 17 1.123.523 26,729,054 19.022,935 46,875 SIS 47 231100 409,874519 252.073 252073 6,079 565 20.415.458 120.260 25.615.266 26867339 310.570,305 Total liabilities Total equity and liabilities Case Study ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio c) Accounts Receivable Turnover ) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points) Based on the ratios calculated above. Can you conclude if any bank would easily give a loan to you? Justify your answer. [2 points) Standalone statement of comprehensive income Year rounded the 2019 2018 AED ARD 13 7215 214125 18.0940 Rev Carles | Gromprudle Administrative and depe Revel of immer www Cherating profil 14 15 (10.1874013 7. 11.16 DAT 67553016 18 1 1.0.0 5415 Femme Finde Profile for the year Other competitor for the year Total comprese income for the year THE 67011 ZO OG Standalone statement of financial position AR Note AED AID ASSETS Ne current Property and equipment Investments is where 4 21.95 1.452 2.3565 1.213.95 Cerra Ime Trade and other Dermed Lontoret Cash and has been 1794 12 11 SCO 14,03 3 3345. 24 19.497 303 3101 2631 4072517015 an Total Standalone statement of comprehensive income Year ended 31 December 2018 AED AED 2019 Note 13 967,215 339 (62.141 258) 105,074,081 $13.481 899 (222094 232) 91.387.657 Revenue Cost of sales Gross profit Administrative and selling expenses Reversal of (provision for impairment of trade receivables Operating profil 14 15 (30,183,413) 978,095 (27340 230) 11 221.851 6 416721 10,036 546 7, 716222) 67353.016 Finance cost Finance income Finance cost.net 18 18 18 (1.0979223 1.146 (1.096, 776) 3.SE (541.50 78,939.770 67011476 Profit for the year Other comprehensive income for the year Total comprehensive income for the year 78.939770 67011676 Standalone statement of financial position As at 31 December 2019 2015 AED AED Note ASSETS Non-current asset Property and equipment Investments in subsidiaries 4 1,012,984 1,343 582 2.356556 1,213,595 1.213.595 Current assets Inventories Trade and other receivables Due from related parties Loan to related parties Cash and bank balances 5 6 11 11 7 179,413,089 121,670,892 80,115.253 26,318,739 407,517,973 409874519 5.529,691 193.441.503 52.580.867 33,455.659 24349497 309,357213 310.570 808 Total assets EQUITY AND LIABILITIES EQUITY Share capital Retained earings Total equity 3,900,000 358,743.239 362.64 219 3.900.000 279.803.469 283.203.400 LIABILITIES Non-current liabilities Provision for employees' end of service benefits 9 355.755 355.75 Current liabilities Trade and other payables Due to a related party Bank borrowings 10 11 17 1.123.523 26,729,054 19.022,935 46,875 SIS 47 231100 409,874519 252.073 252073 6,079 565 20.415.458 120.260 25.615.266 26867339 310.570,305 Total liabilities Total equity and liabilities