How may I get answer to this questions?

Question: Read the comparative statement of financial position and the statement of financial performance of Imaginary Computers Limited. Prepare a credit assessment report using the techniques of financial statements analysis as explained in this chapter. Comment on the financial strengths and weaknesses of the firm.

Credit Analysis and Lending ManagementMarch 13, 2016 Assignment 1 Question: Read the comparative statement of financial position and the statement of financial performance of Imaginary Computers Limited. Prepare a credit assessment report using the techniques of financial statements analysis as explained in this chapter. Comment on the financial strengths and weaknesses of the firm. Imaginary Computers Ltd. Statement of financial position as at 31 December ($ '000) (Balance sheet) 2001 Share capital 5.3 Reserves and surplus 6.7 Long-term debt 4.1 Short-term bank borrowing 5.6 Accounts payables 3.4 Total 25.1 Net fixed assets 17.4 Cash at bank 2.6 Receivables 3.5 Inventory 1.6 Total 25.1 2002 7.5 5.7 3.2 5.2 6.5 28.1 21.8 0.8 2.8 2.7 28.1 2003 8.5 7.4 4.2 7.2 5.6 32.9 26.1 1.2 2.9 2.7 32.9 Imaginary Computers Ltd Statement of financial performance for the year ending 31 December ($ '000) (Income statement) 2001 29.8 24.5 5.3 3.7 1.6 0.2 1.8 1.0 0.8 Net Sales Cost of goods sold Gross Profit Operating Expenses Operating profit Non-operating income EBIT Interest Profit before tax Tax Profit after tax 0.8 Dividends 0.6 Retained earnings 0.2 2002 34.9 26.2 8.7 4.2 4.5 0.1 4.6 0.9 3.5 0.6 2.9 0.6 2.3 2003 57.4 45.8 11.6 7.0 4.6 0.4 5.0 2.0 3.0 3.0 1.1 1.9 Page 1 of 3 Credit Analysis and Lending ManagementMarch 13, 2016 Answer: Trend of ratios and interpretation thereof Ratio Formula 200 200 1 2003 Comments 2 ................................................... Current ratio ........................... ...... ........................... ...... ......... ................................................... ................................................... Liquidity .......................................... ratio ................................................... .................. ................... Quick assets Current liabilitties ...... ...... ......... ................................................... ................................................... ... Inventory turnover ............. ................................................... ........................... ...... ........................... ...... ......... ratio ................................................... ................................................... ... ................................................... .............. .................. .................. Receivables Aver sales per day ...... ...... ......... ................................................... ................................................... .......................................... Gross Profit/sale s ................................................... ........................... ...... ........................... ...... ......... ................................................... .......................................... Profitability ratio ................................................... .................. .................. ......... ................................................... Net profit ANnet sales ...... ...... ......... ................................................... ................................................... .......................................... ............. Debt to equity .............. ratio ...... ........................... ........................... ...... ......... ................................................... ................................................... ................................................... ... Page 2 of 3 Credit Analysis and Lending ManagementMarch 13, 2016 .................. .................. ...... EBIT Interest Payabable...... on loan ................................................... ...... ......... ................................................... ................................................... ... Fixed charges ratio ................................................... ........................... ...... ........................... ...... ......... ................................................... ................................................... ... Page 3 of 3