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Below is the balance sheet dated 31.12.2017 of Ak-Kim Kimya A.. and the income statement for 2017. Additional Information: 40% of sales are credit sales.

Below is the balance sheet dated 31.12.2017 of Ak-Kim Kimya A.. and the income statement for 2017. Additional Information: 40% of sales are credit sales. The term given to buyers is 60 days on average. At the beginning of the period Trade Receivable Amount is 2.900.000 TL. and the Beginning Product Stocks are 3,400,000 TL. It is also known that the chemical industry has an average stock turnover of 5 and an average return on equity of around 20%. According to these data, the enterprise; a) Short-term debt solvency b) Ability to collect receivables c) The ability of stocks to run d) Dependence on stocks, e) Evaluate the Interest Coverage Power. f) Calculate the Activity (Activity) duration of the business. g) Calculate the operating profitability ratio. h) Evaluate whether the company uses its assets effectively. i) Provide information about how the company finances its fixed assets. j) Evaluate the result by performing Dupont Analysis. NOTE: RATE ANALYSIS TECHNIQUE WILL BE USED IN ANSWERING EACH CHOICE 

ASSETS

RESOURCES

Total current assets

8.500.000

Total short-term debt

5.000.000

Liquid assets

450.000

Personal assets

800.000

Trade receivables

2.500.000

 Other receivables

500.000

Stocks

3.500.000

Long-term debts

6.000.000

- Raw metarial stock

200.000

Shareholders equity

22.500.000

- Semi-finished stock

100.000

Capital receipts

12.000.000

- Finished stock

3.200.000

Profit reserves

5.000.000

Prepaid expenses for next months

450.000

Capital reserves

2.500.000

Other current assets

300.000

Period net profit

3.000.000

Total fixed assets

25.000.000

Total assets

33.500.000

Resource total

33.500.000

Year 2017 Income Statement

Net sales

25.000.000

Cost of sales

19.000.000

Operating expenses

3.100.000

Financial expenses

800.000

Term profit

3.800.000

Net profit for the period

3.000.000

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