Question 1 Encik Kasem has asked you to advise him on the long-term liabilities' ability for...

 

Transcribed Image Text:

Question 1 Encik Kasem has asked you to advise him on the long-term liabilities' ability for his company. He provides you with the following ratios: Year 2023 2022 2021 Total liabilities to total assets 30% 40% 50% Times interest earned (TIE) 5.5x 6x 8x Based on the information given, you are required to answer the following question: a. Comment on total liabilities to total assets and TIE ratios for year 2023, 2022, and 2021. (6 Marks) b. Explain what suggestions you should make to Encik Kasem in light from the findings presented in part (a). (4 Marks) (Total: 10 Marks) Question 1 Encik Kasem has asked you to advise him on the long-term liabilities' ability for his company. He provides you with the following ratios: Year 2023 2022 2021 Total liabilities to total assets 30% 40% 50% Times interest earned (TIE) 5.5x 6x 8x Based on the information given, you are required to answer the following question: a. Comment on total liabilities to total assets and TIE ratios for year 2023, 2022, and 2021. (6 Marks) b. Explain what suggestions you should make to Encik Kasem in light from the findings presented in part (a). (4 Marks) (Total: 10 Marks)