1. Assume that you are the Chief Executive Officer of the XYZ Company Ltd an importer, manufacturer and distributor of electrical equipments in Tanzania. The company sells its goods on terms of 2/10, net 30 and extracts from its financial statements over the last 3 years are presented in the table below (figures in Tshs million): 2017 2018 2019 Cash 30 20 $ Accounts receivable 200 200 290 Inventory Net Fixed Assets w sal 1.401.580 1.95 Accounts payable 230 320 330 Accruals 200 210 225 Bank loan, short term 100 100 140 Long-term dhe 300 300 Common stock 100 100 100 Retained Earning sol so se 1.430 1.so .s 400 480 600 Sales 4.000|4.2003 800 Cost of goods sold 3200 1600 1.100 Net Profil 300 200 100 Assume further that of late you have become concerned about the performance of your company in lieu of the current competitive markets resulting out of the many companies that have mushroomed specializing in the same business. In order to position your company adequately and make appropriate recommendations to the Board you have asked the company's Accountant to give you any valuable information there might be regarding the company's performance. He has responded by computing and submitting the following ratios to you. 2017 2018 2019 Current ratio 1.19 1.25 1.20 Acid-test ratio 0.43 0.460.40 Average collection period 182227 NA 8.2 6.1 Total debt to net worth 1.38 1.401.61 Long-term debt to total capitalizatie 0.33 0.32 0.32 Kross profit margin 0.2000.1630.132 Net profit maryn 0.07510.0470.020 2.80 2.76 2.24 Inventory turnover Asset turnover Return toets 0.21 0.13 0.06