The accountant of ABC Manufacturing company Ltd requires a loan to finance current assets and repay a bank overdraft. it is intended that the loan be repaid in one year. The bank is provided with the following financial statement which accompanied the loan request.

Question 1. The accountant of ABC Manufacturing company Ltd requires a loan to finance current assets and repay a bank overdraft. it is intended that the loan be repaid in one year. the bank is provided with the following financial statement which accompanied the loan request

ACC7501 OCT 202... * 4 / 5 1199 ABC Manufacturing Company Balance Sheet as at 31 March 2019 Cash 10.000 Accounts receivable 12.750 Inventory 31,200 Total current assets 53.950 Land 22.500 Plant & equipment 71.250 less accumulated depreciation 131.200) Total fixed assets 62.550 116. SCO 2018 750 17,200 46,250 64,200 27,120 100,000 (32.200) 94.920 159,120 Accounts payable Bank overdraft Total current liabilities Term loan Shareholders' funds 11.500 18.250 29.750 33.700 51,050 116.00 24.000 49.500 73.500 27.500 58.120 59120 to search 0 i e kpl - Adobe Acrobat Reader DC ACCTS01 OCT 202. * 4/5 100% ABC Manufacturing Company Income Statement for the year ended 31 March 2019 129,000 77.400 51,600 2018 163,000 97.800 65,200 Sales Cost of goods sold Gross profit Expenses: Administrative Operating Depreciation Total expenses Earnings before interest & tax Interest Famings before taxes 21.750 12.900 4.700 39,350 12.250 3.500 8.750 4.200 4.550 21.750 16,300 10.000 48,050 17.150 6.250 10.900 5.232 5.668 Tax Net Income Required Based on the financial statements for ABC Manufacturing compute the following ratios Industry Actual Average 2019 1.84 66 Average collection period Actual 2018 17 days II e