TWO MINI CASE STUDIES (6 Marks) Mini Case One (3 Marks): The following summarized financial figures relate to North Ltd, a business operating in the clothing retail sector (Financial figures are in thousands JODs): Extracted Financials 31/12/2020 31/12/2019 Sales revenues 45,000 32,000 Profit after tax 1,550 1,600 Total current assets 5,600 4,400 Total current liabilities 5,100 2,900 Inventories 5,100 2,750 Accounts receivables 200 100 Cash 0 1,550 Accounts payables 3,500 1,500 Tax due 1,100 1,400 Overdraft 500 0 In year 2020, the company opened a third store. As a specialist in financial management, you are required to: 1. Prepare a comparative analysis of the above extracted financials as at December 31, 2019 and 2020 and comment according to your financial analysis. 2. To prepare the current and quick ratios. 3. In 2020, the CEO of North Ltd asked you to analyze the liquidity of the company according to the available information in 2019 and 2020 and prepare a short report on company's liquidity. Mini Case Two (3 Marks): You are an independent financial analyst. In 2020, you have been asked to provide an independent assessment of Yarmouk Public Limited Corporation. Yarmouk Corporation is specialized in the production of freshly imported farm products from Lebanon. The following ratios were provided to you with the following data for Yarmouk for three consecutive years and the industry index for year 2020. Ratio 2018 2019 2020 Industry Index in 2020 Inventory Turnover 32.25 42.42 62.65 53.25 Days' sales in receivables 94 98 113 130.25 Profit Margin 0.06 0.07 0.082 0.075 Total Asset Turnover 0.70 0.65 0.54 0.40 Quick Ratio 1.029 1.03 1.028 1.031 Current Ratio 1.15 1.21 1.33 1.25 Times Interest Earned 4.45 4.375 0.9 4.65 Taking into consideration the above financial information and the industry type, you are required: 1. To analyze and explain Yarmouk Public Limited Corporation's liquidity status. 2. To analyze in depth the Corporation's asset management? Be as complete as possible given the above information, but do not use any irrelevant information.