All numbers are for the year end. Financials for ABC Ltd crores 110 1. Please fill in the blanks Shareholder's equity Total Assets 405 130 ? 40 2. ABC's lending bank's policy requires a) Current Assets the current ratio to be 2:1 or higher, and Quick Ratio b) quick ratio to be higher than 1.2:1 for Accounts Receivable/Debtors it to increase ABC's working capital loan. Will the bank increase the working capital Inventory limit at the end of the year based on Current Liabilities these financials? Explain Sales 90 55 330 Cost of Goods Sold 120 Debt:equity ratio 1.5:1 3. The bank is tightening its parameters for long term loans and wants a) the debt:equity ratio to be lower than 2:1 and b) the interest coverage ratio to be at least 2. Will ABC be able to meet this requirement? Profits before Interest & Tax 80 Interest @ 10% per annum ? Tax @ 25% ? Profits after tax