Analyze each problem, Minimum 5000 words

Management Case 7 Trinimart is a profitable "sari-sari store which eams about P 45,000 each year. The owner Trinidad Martin, is migrating to Australia and offers to sell you her business. The following is a balance sheet as of April 30, 2015 TRINIMART Balance Sheet April 30, 2015 Since you Assets Liabilities & Owner's Equity Cash P 20,000 Accounts Payable P 15.000 Accounts Receivable 32,000 Notes Payable (due in 90 days) 40,000 Merchandise Inventory 58,000 T. Martin Capital 155.000 Store Equipment 100,000 P 210.000 P210.000 not have enough cash you offered to buy Trinidad' : equity in the business under the following terms of purchase: (1) trinidad will withdraw all the cash from the business, 2 (2) Trinidad will also keep the P 32,000 accounts receivable. You can raise cash up to P 43,000 B and intend to borrow P 60,000 to pay Trinidad's remaining equity. The merchandise inventory items and the store equipment are considered reported at current value. You will also assume the existing Habilities of the business. sa If you decide to purchase the business as planned what problems would you encounter? b. Compute the current ratio of the business before and after the purchase. Bc. Compute the working capital of the business before and after the purchase. Prepare a balance sheet as it would appear immediately afte acquiring the business assuming that the above terms of purchase were folowed