ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio c) Accounts Receivable Turnover ) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points) Based on the ratios calculated above, Can you conclude if any bank would easily give a loan to you? Justify your answer. (2 points) Standalone statement of comprehensive income 3019 AID Sais AD 73 323 9. Grupul Alt Other Remme ES ILL 15 14 3146 SIS STA Theme for the year TOON Standalone statement of financial position Aber 2019 AED ASSES Net perty and 01264 ILSE 1211 5.329 Create we Trade Dufted in Cable 1 5 . 11 11 2 1794 131 0,11,25 2013 1145 SMITIT 10 BMITY AND LIABILITIES ROLITY Share Red 3 22 3587 232.00 LIABILITIES Serralla Preston Current Trades De 11 10 11 IT 0443 19022 Tu Total 3003 Standalone statement of comprehensive income Year ended 31 December 2019 2018 AED AED Note 12 13 967,215,339 (862.141 258) 105,074,081 813.481,889 (722.00422) 91,387,657 Revenue Cost of sales Gross profit Administrative and selling expenses Other income Reversal of provision for) impairment of trade receivables Operating profit 14 IS (27,340,230) 11,221,861 (30,183,413) 978,095 4,167,783 80,036,546 6 (0.716.272) 67,553,016 Finance cost Finance income Finance cost.net 18 18 18 (1,097,922) 1.146 (1,096,776) (545,088) 3.54 (541.640) 78,939,770 67,011,476 Profit for the year Other comprehensive income for the year Total comprehensive income for the year 78.939 770 67,011,476 Standalone statement of financial position As at 31 December 2019 AED AED 2018 Note ASSETS Non-current asset Property and equipment Investments in subsidiaries 1.213,595 4 2.2 1.012,984 1,343,582 2,356,566 1,213,595 Current assets Inventories Trade and other receivables Due from related parties Loan to related parties Cash and bank balances ME 179,413,089 121,670,892 80,115,253 26,318,739 407,517,973 409.874,519 5.529.691 193,441,503 52,580,863 33,455,659 24,349,497 309,157213 310,570,808 Total assets EQUITY AND LIABILITIES EQUITY Share capital Retained earnings Total equity 3,900,000 358,743,239 362,643,219 3,900,000 279, 803.469 283,702,469 LIABILITIES Non-current liabilities Provision for employees' end of service benefits 355,785 355.785 252.073 252,073 Current liabilities Trade and other payables Due to a related party Bank borrowings 10 11 17 1.123.523 26,729,064 19.022,928 46.875,515 47,231,300 409,874,339 6,079,568 20,415.438 120,260 26,615,266 26,867,339 310,370,808 Total liabilities Total equity and liabilities ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio e) Accounts Receivable Turnover f) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points] Based on the ratios calculated above, Can you conclude if any bank would easily give a loan to you? Justify your answer. [2 points]
