A. The following financial information is related to Nilam Bhd as at 31 December 2020. Nilam Bhd Statement of Financial Position as at 31 December 2020 RM RM Non-Current Assets 25,600,000 Current Assets Inventories 4,250,000 Accounts receivable 880,000 Prepaid expenses 142,000 Marketable securities 200,000 Cash at bank 280,000 5,752,000 TOTAL ASSETS 31,352,000 Stockholders' Equity Common stock 12,000,000 Retained earnings 2,300,000 Non-Current Liabilities 8% Bonds 8,000,000 Long-term loan 4,500,000 Current Liabilities Accounts payable 3,797,000 Accruals 605,000 Bank overdraft 150,000 4,552,000 TOTAL EQUITY AND LIABILITIES 31,352,000 Additional information: 1. Operating profit for the year ended 31 December 2020 is RM1,182,000. In addition, the company incurred an interest expense of about RM865,000. 2. The financial ratios of the industry average for the same period are as follows: Current ratio 3.1X Acid-test ratio 1.2x Debt ratio 44.2% Debt-to-equity ratio 74.3% Times interest earned 3.7X a. Calculate the following ratios for Nilam Bhd based on the statement of financial position as at 31 December 2020: i. Current ratio ii. Acid-test ratio Ill. Debt ratio iv. Debt-to-equity ratio V. Times interest earned (10 marks) Based on your answers in (a), evaluate the debt management of Nilam Bhd. (4 marks) b