QUESTION 3 ABC Ltd has applied for a loan from a bank for its expansion programme. The company has submitted the following financial statements to the bank: ABC Ltd Statement of Financial Position as at 31December 2013 ASSETS S Fixed asset 5,250,000 950,000 200,000 400,000 1,550,000 6,800,000 3,650,000 275,000 175,000 95,000 545,000 4,195,000 2,300,000 305.000 Total stockholders' equity 2,605,000 Total liabilities and stockholders' equity 6,800,000 ABC Ltd Income Statement for Year ending 31 December 2013 (S) Sales revenue 3,050.000 (1,000,000) 2,050,000 (1,525,000) 525.000 (300,000) 225,000 (78,000) 147,000 Net fixed asset Current asset Inventories Account receivable Cash Total current asset. Total Assets LIABILITIES AND EQUITY Non-current liabilities Long term debt Current liabilities Notes payable Account payable Other current liabilities Total current lablities Total Liabilities Stockholder's equity Common share Retained eamings Less: Cost of goods sold Less: Operating expenses. Less: Interest expenses Gross profit Operating profit Net profit before taxes Less: Taxes Net profit after taxes Based on the information above, calculate: i. Current ratio ii. Quick ratio iii. Inventory turnover iv. Average collection period v. Net profit margin vi. Gross profit margin vii. Debt ratio viii. Time interest earned (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) |||