ABC Company provides the following balance sheet and income statement for the year of 2016.

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 ASSETS Current Assets: Cash in hand 100,000 Net Sales $ 900,000 Inventory 90.000 Debtors 145,000 Cost of goods sold 550,000) Total current assets 3,35,000 Gross profit 350,000 Non-Current Assets: Operating Expenses (90,000) Building 1,290,000 Plant & Machinery 770,000 Earnings before interest and tax 260,000 Vehicles 470,000 (EBIT) Total non-current assets 2,530,000 Interest expense (60,000) Total Assets 2,865,000 Earning before tax 200,000 LIABILITIES Tax (35%) (70,000) Current Liabilities: Creditors 410,000 Earning after tax 130,000 Tax Payables 20,000 Required: Calculate the following ratios: 1) Average payment period. (ii) Average collection period. Salary Payables 92,000 (iii) Inventory turnover ratio. Total Current liabilities 5,22,000 (iv) Fixed assets turnover Non-Current Liabilities: Long term loan 10,00,000 (v ) Total assets turnover ratio. Total Liabilities 15,22,000 (vi) Quick ratio. OWNER'S EQUITY: (vii) Return on Equity Paid up capital 740,000 Retained Earning 543,000 Interest coverage ratio . Share premium 60,000 Note: Assume 360 days in a year. Total ,343,000 Total Liabilities 2,865,000 b. Assuming that the industrial average for collection and payment period is 1 10 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