Preview File Edit View Go Tools Window Help Question-Review-NEW (page 2 of 3) Edited Q Search Y Question-Review-NEW Name Student ID Anandam Manufacturing Company Income Statement Year Ended March 31, 2015 s INR 2015 2014 Sales Cash 800 7,200 8,000 (4,800) 3,200 480 4,320 4,800 (2,832) 1,968 Credit Total sales Cost of Goods Sold Gross Profit Operating expenses Selling, General and Administration Depreciation (1,000) (660) 1,540 (340) 1,200 (360) 840 (450) (400) 1,118 158) 960 (288) 672 EBIT Interest expenses EBT Tax (30%) Net profit Preview File Edit View Go Tools Window Help Question-Review-NEW (page 2 of 3) Edited Q Search Y Question-Review-NEW Anandam Manufacturing Company Balance Sheet Year Ended March 31, 2015 s INR 2015 2014 Assets Current assets Cash and Cash Equivalents Accounts Receivable Inventories 106 2,100 2,250 4,456 100 1,500 1,500 3,100 Total current assets Non-current assets Property, Plant and Equipment (cost) Less: Accumulated Depreciation Property, Plant and Equipment (net) 5,200 500 4,700 9,156 3,660 1,160 2,500 5,600 Total Assets Equity and Liability Equity Share Capital Reserve & Surplus 2,000 1,876 3,876 1,600 1,036 2,636 Total equity Current liability Accounts Payable 2,780 1,728 Non-current liability Long-term Borrowings 2,500 5,280 9,156 1,236 2,964 5,600 Total liabilities Total Equity & Liabilities Ratio Ratio Anandam 22% In Return on Equity Return on Assets Gross Profit Ratio Net Profit Ratio Times Interest Earned 40% 10.5% AX 2.65 X 22% 1096 40% 18.0% 10 X 4.85 X Current Ratio Quick Ratio Receivable Turnover Receivable Da Payable Turnover Payable Days Anandam 1.60: 1 0.79:1 4.00 X In 2.30:1 1.20: 1 7.00 X 52 4.00 X 91 days 91 da 2.13 X 171 day Turnover Preview File Edit View Go Tools Window Help a E , , 42% Mon 8:06 PM Question-Review-NEW (page 3 of 3) -Edited Q Search Y Question-Review-NEW Problem #1 For the following tasks. please refer to the information provided on the page #2 (ratios. income statement, and balance sheet of the Anandam Manufacturing Company Part (B) Assume the company introduced a new customer management system and offered a standard price discount of 2/10 n/30. Assume futher that all customers would take the new price discount and that the discount leads to an increase of sales by 20%. Credit sales remain at 90% of total sales, what would be Anandam Manufacturing's new average accounts receivable balance? Should the company offer the discount? [15 marks] Please organize your work so it is easy to read/easy to follow