1. The total cost of the equipment is $800 000. NK is considering two different sources of finance: (Option A) a seven-year 5720 000 bank loan. (Option B) selling $800 000 in shares. Financial information for NK, for the year ending 31 May 2014: Cash $176 000 Cost of goods sold $3 900 000 Creditors $230 000 Debtors 5674 000 Expenses S3 800 000 Interest $120 000 Loan capital Net fixed assets 52 600 000 Retained profit $970 000 Share capital $300 000 Sales revenue 58 200 000 Short-term borrowing $270 000 Stock 5320 000 Tax $70 000 Using data from the table: (a) calculate loan capital X (show all your working (b) construct a fully labelled balance sheet for NK; (e) calculate NK's gross profit margin (show all your working); (d) calculate NK's forecasted gearing ratio for Option A and for Option B (show all your working)