Answer question (e) only.Do use the information given and also include the limitations and a conclusion.Please answer in essay form.Thank you. Do elaborate on the answer.

THE KOWLOON TOY COMPANY SKILLS ANALYSIS, INTERPRETATION, PROBLEM SOLVING months as they build up stocks ready for the very busy buying period. This puts an even greater strain on liquid resources. Working capital is actually high during this period but a large proportion is held in stocks. This does not show up in the statement of financial position because the accounts are produced at the end of the tax year (April) when most of the stocks have been sold. This seasonal demand creates quite a challenge for the financial manager of the Kowloon Toy Company. Table 4 shows some information from the Kowloon Toy Company's statement of financial position between 2014 and 2017 2017 2016 2015 2014 (HKD (HKD (HKD (HKD billion) billion) billion) billion) Non-current assets 131.6 126.5 118.2. 104.2 Current assets 34.2 30.9 28.3 23.4 Current liabilities 28.1 23.1 16.5 11.6 Non-current liabilities 44.8 41.6 38.5 37.7 Share capital 50 50 50 50 Retained earnings 42.9 42.7 41.5 28.3 A Table 4 Extracts from the Kowloon Toy Company's statement of financial position, 2014-17 Q Hong Kong-based Kowloon Toy Company manufactures a range of toys for the European market. Most of its products are plastic-based and targeted at the 4-6 age group. Examples include dolls, planes, trains, cars, creative games, discovery toys, farms and animals. Like many toy manufacturers the Kowloon Toy Company attends toy fairs at the beginning of the year to display new designs and take orders from large buyers for the Christmas period. However, one of the problems that the Kowloon Toy Company has is the amount of trade credit they have to offer buyers to secure sales. Most buyers want at least 120 days credit. This has increased from 60 days in 2011. Another problem the Kowloon Toy Company encounters is in the build up to Christmas. Production levels are higher during the late summer and autumn (a) Define working capital. (2 marks) (b) Calculate the value of working capital for the Kowloon Toy Company between 2014 and 2017. (4 marks) (c) Calculate the current ratio for the Kowloon Toy Company between 2014 and 2017. (4 marks) (d) Explain how reducing receivables may not lead to an increase in the value of working capital for the Kowloon Toy Company. (4 marks) (e) Assess the measures that the Kowloon Toy Company might use to deal with its problems. (10 marks)