1.0 (a) The working capital of ABC Ltd. has deteriorated in recent years and now stands as: ABC Limited Balance Sheet as at 31 December 2016 (extract) Current Assets $ Current Liabilities $ Inventory 560,000 Creditors 490,000 Debtors 350,000 Bank Loans 210,000 Cash 70,000 980,000 700,000 i. ii. Compute the current and quick ratios. (2 mks) A further bank loan of $50,000 against debtors is under negotiation. Assuming the loan is received; calculate the revised current and quick ratios. (3 mks) (b) From the following annual accounts of New Horizontal Limited you are required to calculate the following ratios (2 mks each) and comment on the results (5 mks), indicating what other information you require (2 mks): i. Gross profit percentage Net profit percentage Return on total assets Quick asset ratio Debtors collection period ii. iii. iv. v. vi. Stock turnover vii. Fixed assets turnover viii. Current ratio Page | 10