QUESTION $4($a$)[14$ marks$]$

Before Neo Hian Distributors approaches the bank for a loan, the company has asked their internal credit department to see if the firm can generate any internal funds.

Hints:

Calculate the omitted values in the table below.

For calculations use $365$ days in a year

What conclusions can you draw from your analysis?

What supplementary quantitative information is necessary to increase your confidence in your analysis?

Note: You are not expected to conduct horizontal and vertical analysis nor derive cash flow statements when answering this question,

$\backslash$table$[[$Neo Hian Distributors$],[$Profit and Loss Statement$],[($Figures in billions$)],[,31-$Dec$-20,31-$Dec$-21,31-$Dec$-22],[$Net Sales,$390,420,480],[$Cost of Goods Sold $($COGS$),328,353,400],[$Gross Profit,$62,67,80],[$Selling$,$ General & Admin Expenses,$39\mathrm{.}8,43\mathrm{.}7,48],[$Depreciation Expense,$5,5,8],[$Operating Profit,$17\mathrm{.}2,18\mathrm{.}3,24],[$Extraordinary Expenses$],[$EBIT$,17\mathrm{.}2,18\mathrm{.}3,24],[$Net Interest Expense,$5\mathrm{.}5,5,7],[$EBT$,11\mathrm{.}7,13\mathrm{.}3,17],[$Income Tax Expense,$4\mathrm{.}7,5\mathrm{.}3,6\mathrm{.}8],[$EAT$,7,8,10\mathrm{.}2],[$Dividends$,2,2,3\mathrm{.}2],[$Retained Earnings,$5,6,7]]$

QUESTION $4($b$)[6$ marks$]$

After providing the credit department with your analyses. The chief officer provides you with the industry averages and medians. How does this impact your intemal finance sources? Justify using the mean or median in your calculations. Do not calculate both the mean or median, justify why you are using either the mean or median. Show all relevant calculations.

$\backslash$table$[[$INDUSTRY$,$MEDIA$],[$LIQUIDITY RATIOS,,N$],[$CURRENT RATIO,$2\mathrm{.}00,2\mathrm{.}00],[$QUICK RATTO,,$1\mathrm{.}25],[$ACTIVITY RATIOS,$6\mathrm{.}00,7\mathrm{.}00],[$INVENTORY TURNOVER,$50\mathrm{.}0,35\mathrm{.}0],[$AVG COLLECTION PERIOD $($Days$),6\mathrm{.}75,45\mathrm{.}0],[$AVG PAYMENT PERIOD $($Days$),2\mathrm{.}5,2\mathrm{.}0],[$FIXED$-$ASSET TURNOVER,,$],[$TOTALASSET TURNOVER,$0\mathrm{.}05,0\mathrm{.}05],[$PROFITABILITY RATIOS,$0\mathrm{.}10,0\mathrm{.}10],[$RETURN ON TOTAL ASSET,$0\mathrm{.}02,0\mathrm{.}02],[$RETURN ON NET WORTH,,$],[$PROFIT MARGIN ON SALES,$0\mathrm{.}65,0\mathrm{.}60],[$LEVERAGE RATIO,,$],[$DEBT RATIO,,$]]$