Current assets 1 150 000 950 000 Long-term assets 2 850 000 550 000 Total assets $ 4 000 000 $1 500 000 Current liabilities 700 000 425 000 Long term liability 1 900 000 600 000 Shareholders' equity 1 400 000 475 000 Total liabilities and equity $ 4 000 000 $1 500 000 Required: (a) Explain why FT'S may be reluctant to acquire AUL. Provide calculations to show basis for your answer. (7.5 marks) (b) If New Age were to use residual income to measure divisional performance and evaluate managers, would FTS be more likely to acquire AUL? Provide calculations. Assume imputed interest charge of 15%. (7.5 marks) (c) Comment on the current bonus scheme and outline two other schemes that New Age could sue to deliver bonuses to divisional managers