You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company's profitability, liquidity, solvency and management efficiency. Requirement: a. Complete the balance sheet and sales data (fill in the blanks), using the following financial data: 60% Debtet worth Acid test ratio 1.2 Asset turnover 1.5 times 40 days Day sales outstanding in accounts receivable Gross profit margin Inventory turnover 30% 6 times Balance sheet Cash Accounts receivable Accounts payable Common stock RM15,090 Retained earnings RM22,000 Inventories Plant & equipment Total assets Total liabilities & capital Sales Cost of goods sold (20 marks) a. Explain how do analysts use ratios to analyse a firm's leverage? Which ratios convey more important information to a credit analyst those revolving around the levels of indebtedness or those measuring the ability to service debt? What is the relationship between a firm's level of indebtedness and risk? What must happen in order for an increase in leverage to be successful? Discuss and illustrate all your answer. (20 marks)