Andrew works at a public company called TNN Manufacturing Ltd.He has observed that the company is trying to expand its operationin the market over the past one year. The management has heavilyinvested in plant and equipment over this period. Considering thehigh growth potential of the business, Andrew is planning to investin this company by purchasing shares. He consulted with this friendPeter regarding this plan. After reviewing TNN Manufacturing’sbalance sheet for past two years, Peter commented, "While Iunderstand that this company is focusing on growth, they have ataken a risky approach to achieve the growth". Do you agree withPeter's comments? Justify your answer. TNN Manufacturing LtdComparative Balance Sheet As at 30th June 2019 and 2020 2019 2020ASSETS ($) ($) Current Assets Cash at Bank 23,600 6,200 AccountsReceivable 41,800 51,100 Inventory 32,000 40,400 Other currentAssets 6,400 5,900 Total Current Assets 103,800 103,600 Non-currentAssets Land and Building 54,000 54,000 Plant and Equipment 62,000190,000 Furniture 5,800 5,300 Long-term investment 9,200 9,000Total Non-current Assets 131,000 258,300 Total Assets 234,800361,900 LIABILITIES Current liabilities Accounts Payable 52,40052,100 Total current-liabilities 52,400 52,100 Non-currentliabilities Long-term debt 82,400 208,800 Total non-currentliabilities 82,400 208,800 Total Liabilities 134,800 260,900 EQUITYShare Capital 100,000 101,000 Total Equity 100,000 101,000 TotalLiability and Equity 234,800 361,900