Below are some financial ratios of Sharp Ltd. for 20X8 and 20x9 along with industry standard ratios. 20X9 20X8 Industry 12% 11% 10% 12.4x 14.3X 13.5X 8.7X 8.5X 8.3X Profit margin Receivables turnover Inventory turnover Current ratio Capital asset turnover Times interest earned 2.0 1.8 1.6 14X 13X 8X 5X 4X 3X Debt to total assets 28% 30% 32% Return on assets 17% 15% 10% Return on equity 21% 20% 18% I Ff T i B I . !!! III DO Use the above ratios to answer the following: a) Comment on Sharps profitability, with reference to one of the above ratios. (2 marks) b) Sharp wants a 10-year loan, and they have approached you, a bank loans officer. What answer would you give them? Using the two most important ratios briefly explain your answer. (2 marks) c) Would you buy shares in Sharp? Refer to the two most important ratios in giving your answer. (2 marks) Use the above ratios to answer the following: a) Comment on Sharps profitability, with reference to one of the above ratios. (2 marks) b) Sharp wants a 10-year loan, and they have approached you, a bank loans officer. What answer would you give them? Using the two most important ratios briefly explain your answer. (2 marks) c) Would you buy shares in Sharp? Refer to the two most important ratios in giving your answer. (2 marks) d) Sharp wants you to sell them inventory on credit, with terms n/30. What would your answer be? Refer to the two most important ratios in giving your answer. (2 marks) e) On average, how long do Sharp's customers take to pay for their purchases? (2 marks)