====== ====== 2. (a) The Key Financial Information for Bates plc for the last two years are as follows: Year 2018 Year 2019 Cash 30,000 20,000 Accounts Receivables 200,000 260,000 Inventory 400,000 480,000 Property, Plant and Equipment 800,000 800,000 Total Assets 1,430,000 1,560,000 ====== Accounts Payable 230,000 300,000 Accruals 200,000 210,000 Short-term debt 100,000 100,000 Long-term debt 300,000 300,000 Share Capital 100,000 100,000 Retained Earnings 500,000 550,000 Total Liabilities and Shareholders Equity 1,430,000 1,560,000 ====== Sales 4,000,000 4,300,000 Cost of goods sold (3,200,000) (3,600,000) Gross profit 800,000 700,000 Administrative, & selling expense (300,000) (310,000) Interest (15,000) (15,000) Taxes (185,000) (175,000) Net Profit 300,000 200,000 ===== Calculate the following financial ratios for 2018 and 2019, using the figures above: i. Gross profit margin ii. Current ratio iii. Acid test ratio iv. Trade receivables collection period V. Inventory holding period vi. Interest cover ratio (12 marks] (b) Using the ratios calculations in Question 2 (a) above, critically assess the financial health of Bates plc from the perspective of a potential supplier. (5 marks] (c) Critically discuss what non-financial information you would be looking into the annual report of Bates plc from the perspective of an investor. Suppose you are a potential investor in Bates plc, and, you are looking for non-financial information in the annual report