$4.$ The following information is an Income Statement $2023$ for Juju Company.

$2023$

$($RM in mil$)$ Calculations $2024$

$($RM in mil$)$

Sales

COGS

Gross profit

Operating costs

EBITDA

Depreciation expense

EBIT

Interest expense

EBT

Taxes

Net Income

Dividends

Addition to RE $20\mathrm{.}0$

$(8\mathrm{.}0)$

$12\mathrm{.}0$

$(3\mathrm{.}0)$

$9\mathrm{.}0$

$(0\mathrm{.}8)$

$8\mathrm{.}2$

$(0\mathrm{.}2)$

$8\mathrm{.}0$

$(3\mathrm{.}0)$

$5\mathrm{.}0$

$(2\mathrm{.}0)$

$3\mathrm{.}0$

Is the forecast Income Statement for $2024$ is better than $2024?$ Evaluate.

$5.$ Qabul Corporation has a corporation tax rate of $20\%.$ They have announced total sales at RM$420$ million and a net margin of $5\%.$ If they have RM$100$ million of debt outstanding on which they have to pay $10\%$ annually, what will their times interest earned ratio $($TIE$)$ be$?$

$6.$ When a firm enters into a loan agreement with its bank, it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. So$,$ it is important that the firm be aware of the effects of its decision on the current ratio. Consider the situation of Advance Auto Parts $($AAP$)$ in $2023.$ The firm had total current assets of RM$1,807,626,000$and total current liabilities of RM$1,364,994,000.$

Required:

a$.$ What is the firm$$s current ratio?

b$.$ If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payable, how much could it increase its inventory without reducing the current ratio below $1\mathrm{.}2?$

c$.$ If the company needed to raise its current ratio to $1\mathrm{.}5$ by simultaneously reducing its investment in current assets and reducing its accounts payable and short$-$term debt, how much would it have to reduce current assets to accomplish this goal?