Question: Please answer in details. Thx! Question (2.A) Financial Ratios A lending officer is provided with the following Table 1 about the financial ratio of a
Please answer in details. Thx!


Question (2.A) Financial Ratios A lending officer is provided with the following Table 1 about the financial ratio of a business borrower XYZ Ltd. XYZ Ltd. is a durable-goods producer and has a policy of giving 60 days' credit. Analyse the liquidity management of XYZ Ltd by using all the ratios below. (5 marks) Table 1. Financial Ratios of XYZ Ltd. 2018 2019 2020 Current Ratio 1.21 1.12 1.00 Quick Ratio 0.9 0.8 0.8 Inventory Turnover Ratio 4 3.5 3 Creditor Turnover(days) 37 39 641 Debtor Turnover(days) 63 64 86 Paragraph E Question 7 Question (2B). List five reasons why a small business may find it difficult to obtain loans from banks. (5 marks) Not yet answered Marked out of 5.00 Paragraph - Flag question Patha Previous page Finish attempt
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