Additional Information: 1. All sales are on account. 2. Long-term liabilities are owed to the company's bank. 3. Terms of sale are net 30 days. Required: CHECK a. Compute the following measures for both Years 4 and 5 : (a) (5) Year 5, 28.10 (1) Working capital. (8) Year 5, L.46 (2) Current ratio. (3) Acid-test ratio. (4) Accounts receivable Jurnover. (5) Collection period of receivables. (6) Inventory turnover. (7) Days to sell inventory. (8) Debt-to-equity ratio. (9) Times interest eatned. Chapter Ten I Credit Analysis b. Using Year 3 as the base year, compute an index-number trend series for: (1) Sales. (2) Cost of goods sold. (3) Gross profit. (4) Marketing and administrative costs. (5) Net income. c. Based on your analysis in (a) and (b), prepare a one-page reportyielding a recommendation on whether to grant a loan to lan Manufacturing. Supportyour recommendation with relevant analysis. IAN MANUFACTURING COMPANY Condensed Income Statements For Years Ended June 30, Year 5, Year 4, Year 3 A reconciliation of retained earnings for years ended June 30 , Year 4 , and Year 5 , follows: Ian Manufacturing Company was organized five years ago and manufactures toys. Its most recent CASE 10-3 three years' balance sheets and income statements are reproduced below: Making a Lending Decision Additional Information: 1. All sales are on account. 2. Long-term liabilities are owed to the company's bank. 3. Terms of sale are net 30 days. Required: CHECK a. Compute the following measures for both Years 4 and 5 : (a) (5) Year 5, 28.10 (1) Working capital. (8) Year 5, L.46 (2) Current ratio. (3) Acid-test ratio. (4) Accounts receivable Jurnover. (5) Collection period of receivables. (6) Inventory turnover. (7) Days to sell inventory. (8) Debt-to-equity ratio. (9) Times interest eatned. Chapter Ten I Credit Analysis b. Using Year 3 as the base year, compute an index-number trend series for: (1) Sales. (2) Cost of goods sold. (3) Gross profit. (4) Marketing and administrative costs. (5) Net income. c. Based on your analysis in (a) and (b), prepare a one-page reportyielding a recommendation on whether to grant a loan to lan Manufacturing. Supportyour recommendation with relevant analysis. IAN MANUFACTURING COMPANY Condensed Income Statements For Years Ended June 30, Year 5, Year 4, Year 3 A reconciliation of retained earnings for years ended June 30 , Year 4 , and Year 5 , follows: Ian Manufacturing Company was organized five years ago and manufactures toys. Its most recent CASE 10-3 three years' balance sheets and income statements are reproduced below: Making a Lending Decision