Case Study ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio e) Accounts Receivable Turnover f) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points] Based on the ratios calculated above, Can you conclude if any bank would easily give a loan to you? Justify your answer. [2 points) Standalone statement of comprehensive income Year ended 31 December 2019 2018 AED AED Note Revenue Cost of sales Gross profit 12 13 967,215,339 (862.141 258) 105,074,081 813.481,889 (722.094 232) 91387.657 14 13 (30,183,413) 978,095 Administrative and selling expenses Other income Reversal of(provision for) impairment of trade receivables Operating profit (27,340,230) 11.221 861 6 4167 783 80,036,546 2.216272 67,553,016 Finance cost Finance income Finance cost-net 18 18 18 (1.097.922) 0.146 (1,096,776) (545.058) 3.SEN (541.340) 78.939,770 Profit for the year Other comprehensive income for the year Total comprehensive income for the year 67,011,476 78.919,770 67 011 476 Case Study ABC Inc. is a Corporation with a focus on Garment and textile manufacturing in the UAE. They are now looking to finance their new project, are looking for a bank to give them a loan. Find the following ratios, interpret and analyze them: a) Current Ratio b) Acid Test Ratio c) Times Interest Earned Ratio d) Debt Ratio e) Accounts Receivable Turnover f) Inventory Turnover g) Days Sales in Inventory h) Average Collection Period [8 points] Based on the ratios calculated above, Can you conclude if any bank would easily give a loan to you? Justify your answer. [2 points) Standalone statement of comprehensive income Year ended 31 December 2019 2018 AED AED Note Revenue Cost of sales Gross profit 12 13 967,215,339 (862.141 258) 105,074,081 813.481,889 (722.094 232) 91387.657 14 13 (30,183,413) 978,095 Administrative and selling expenses Other income Reversal of(provision for) impairment of trade receivables Operating profit (27,340,230) 11.221 861 6 4167 783 80,036,546 2.216272 67,553,016 Finance cost Finance income Finance cost-net 18 18 18 (1.097.922) 0.146 (1,096,776) (545.058) 3.SEN (541.340) 78.939,770 Profit for the year Other comprehensive income for the year Total comprehensive income for the year 67,011,476 78.919,770 67 011 476
