a. ABC Company provides the following balance sheet and income statement for the year of 2016. ABC COMPANY BALANCE SHEET AS OF 31 DECEMBER, 2016 ABC COMPANY INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER, 2016 "$" Net Sales $ 900,000 ASSETS Current Assets: Cash in hand Inventory Debtors Total current assets 100,000 90,000 145,000 3,35,000 Cost of goods sold (550,000) Gross profit 350,000 Non-Current Assets: (90,000) Building Plant & Machinery Vehicles Total non-current assets 260,000 Operating Expenses Earnings before interest and tax (EBIT) 1,290,000 770,000 470,000 2,530,000 Interest expense (60,000) Total Assets 2,865,000 200,000 LIABILITIES Earning before tax Tax (35%) (70,000) Current Liabilities: Creditors Tax Payables Earning after tax 130,000 410,000 20,000 Required: Calculate the following ratios: (i) (ii) Average payment period. Average collection period. Inventory turnover ratio. (iii) 92,000 5,22,000 Fixed assets turnover. Salary Payables Total Current liabilities Non-Current Liabilities: Long term loan Total Liabilities Total assets turnover ratio. 10,00,000 15,22,000 (iv) (v) (vi) (vii) Quick ratio. Return on Equity Interest coverage ratio . OWNER'S EQUITY: Paid up capital Retained Earning Share premium Total Total Liabilities & Equity Note: Assume 360 days in a year. 740,000 543,000 60,000 1,343,000 2,865,000 b. Assuming that the industrial average for collection and payment period is 110 and 150 days respectively and fixed asset turnover is 40%, evaluate the performance of the ABC COMPANY based on your answer in part (a) above