6. Suppose you are the lucky winner of a lottery. You are given the option of taking the prize money either as (1) 10 payments of 12,000 per year starting today, or (2) a lump sum of 100,000 paid today. Assume the interest rate is 6%, which option should you take? Support your answer with calculation. (5 marks) 7. The financial information below was extracted from the financial statements of a trading company, for the year ended 31 December 2021. Net sales Cost of sales Net profit Current assets Total assets Current liabilities Total liabilities 600,000 350,000 30,000 66,000 400,000 44,000 180,000 Required: Compute and interpret the following ratios: (1) Current ratio (ii) Profit margin (6 marks) 8. A manufacturer uses a job order cost system. Manufacturing overhead is applied to jobs based on direct labour costs. The company estimated the following manufacturing costs for 2021: Direct materials Direct labour Manufacturing overhead 28,000 12,000 15,000 Job PC6 was completed in January 2021. The job uses 2,200 of direct materials and 1,100 of direct labour. Required: (a) Compute the predetermined overhead rate. (2 marks) (b) Compute the total manufacturing costs of Job PC6. (4 marks)