help me answer this ASAP thx

Brighton Fown, La Brighton Food) is a privately owned limited company with several shareholders. It has been in the food business for many years. Mr. John Chan is the company's biggest shareholder holding 40% of the shares. He also the company manager who take care of the company's business operations. In the past few years, the business is blooming us both the sales and the net income have been growing steadily at around 10% per year. However, this situation has been changed a couple of months ago since another keen competing food company entered and competes keenly in the market. Since this new competitor opened, Brighton Food has gradually lost a considerable number of customers because this competitor not only offers attractive discounts, but also gives out delicate promotional in hemstols customers. Brighton Food is not able to catch up with such flexible market promotion initiatives. Mr. Chan is very worried that the annual sales and me Income growths may not be able to reach 10% any more. In the middle of the year, he prepared the following projected income statement and balance sheet for the whole financial year of 2019 in order to foresee the final business results at the year end 2019 proiecte 2018 act 1,200,000 675.000 $25,000 130.000 Ben Food Co. Income Statements in der For the Year Ended 31 Dec Sales Cost of goods sold Gross profit Operating Experies Salaries and Wages Depreciation Rent Insurance Bad debt Utiles Operating income Interest expense Income before income taxe Income taxes Net income INetamines per share 5.000 93.000 22.000 20.000 34.000 150.000 5.000 96,000 24,000 14400 36.000 3500 171.000 2016 157.800 55,600 102200 2004 Briche Food Co. Rence Sheets in der AS 31 Dec 2018 actual 2019 projectes 100.000 240,000 190,000 60.000 220.000 Accounts receivable Inversores Fumande $5,000 S85.000 Lomba kun 140.000 110.000 250.000 900 25 000 100 000 Robo mo penetle over the past few years that Brighton Food special bonus to Mr. John all for rewarding his outstanding perforintho interno de com um and payment, which is that the met income growth mise be madalained at 10% in cladi totala anificent net income growth. However, in het, en condition you onth other hand, Bridal Rood has borrowed a long term loan from Western Bank of the essential om one at least 10% in a year. Otherwi, Wewer Bank Indicted to demand for the full immediately even though the bank loan is still not due. Mr. John Chan also hires a financial consultant, Mr. Tim Lee, who is specialized in food business, to analyze the business situation of Brighton Food. After having studied the current business practices of the company, he comes up with the following important findings First, Brighton Food only purchases its goods, i.e. inventories, from one single supplies, ie. the Apes Food Manufacturing Co., Ltd., but the cost prices are generally 5-10% higher than that of the other similar suppliers in the market. Secondly, the bulk purchasing policy of Brighton Food has put the company in a disadvantageous position. As a matter of fact, the Inventory turnover rate of similar companies is 10-12 times per year. Thirdly, the avera collection period of the accounts receivable of Brighton Food is 70 days while that other similar companies is normally 30 days. Moreover, a higher than average proportion of the accounts receivable becomes long overdue. As a result, they turn out to become uncollectible eventually, ie, bad debts. Fourthly, the company's cash is currently sitting in a bank current account, which bears no interest income at all. Fifthly, the long-term bank loan was borrowed two years ago with a fixed interest rate of 12% per annum. However, the bank loan interest rate has actually come down to a much lower level of per annum recently. Lastly, as usual, Brighton Food is going to declare and pay a cash dividend of $15,000 (@50.3 per share) to its shareholders soon after the first six months of business financial year. In fact, Mr. John Chan has connection with another bank, Eastern Bank, which may also lend money to Brighton Food. This can help the company to raise additional capital fund through debt financing. However, Eastern Bank will require its potential clients to meet series of financial ratios based on their projected financial results of the current year in order to determine the eligibility for obtaining the long-term bank loan Eastern Bank Financial Rios (a) Current ratio (b) Quick ratio (c) Total assets to total liabilities ratio (d) Debt-to-equity ratio le Return on assets Profit margin ) Inver (h) Cost oods sold VA uncertain whether Brighton Food will be able to obtain the loan from Eastern ry woted about the forthcoming situation in the second half of ohn Chan even once thought of an idea to secretly create anies and then place large amount of purchase orders to Bruction 01 in order to boost the sales forte at the end of the Chat order the c elled without any actual pwymien W Help AY1920 Sem 1 HST4015 - Assignment Brighton Food Co., Ltd. (Questions).pdf (page 4 of 4) Answer all the following questions with appropriate elaborations:- 1) What are the main purposes for preparing the income statement and balance sheet? (4%) 2) What is net income? Why is net income so important to the company manager? (4%) 3) Why are the company's shareholders always concerned about the net income? (4%) Analyze the changes of both the projected sales and net income of 2019 as compared to that of 2018 actual sales and net income. Should Mr. John Chan be worried about the projected financial situation? (12%) Evaluate Brighton Food's cash position if nothing is done to tackle the current situation. Is it going to face any cash shortage problem? [Hint: consider the long-term loan from Western Bank] (12%) Discuss whether Mr. John Chan's secret plan will actually help solve the company's problem or not. But what are the potential adverse consequences if his plan is actually carried out? (6%) 1) Based on the important findings collected by Mr. Tim Lee, suggest appropriate (10%) measures to improve Brighton Food's net income. 8) Based on the important findings collected by Mr. Tim Lee, suggest appropriate measures to improve Brighton Food's cash position. (6%) AY1920_Sem 1 HST4015 - Assignment - Brighton Food Co., Ltd. (Questions).pdf (page 4 of 4) @ Q Search With reference to the financial ratios indicated by Eastern Bank, calculate all the financial ratios for Brighton Food, using the 2019 projected figures, and then compare each of the ratio results to the Easter Bank's financial ratio requirements table shown in page 3 (16%) 10) According to the answers in the Question (9), will Brighton Food be eligible to obtain (4%) a long-term bank loan from Eastern Bank? (11) If Brighton Food is currently not eligible as according to the projected financial results for the year of 2019, which measure(s) mentioned in the answers of Questions (7) and/or (8), if implemented, should be able to help the company become eligible in the coming months? (14%) (12) Suppose Brighton Food successfully obtains the loan from Eastern Bank after improving on the relevant aspects mentioned in the answers of Question (11). In which specific areas should this long-term financing resource be used in order to help improve the company's financial performance? (8%) - End