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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

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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 AD 12 Rev Custofa Gro profile 14 1050 LPPO 14 15 (181411 97. Other income Revenal provision for impairment of tale cev Operating profit 410 67553016 15 13 50 income L Profit for the year Xheheshin for the you Total comprehensive income for the year 73991 Standalone statement of financial position AED ALD ASSETS Na-cara Property det tamains utsidiarie 191291 123.59 2015 3 Current Inventions Trade and other receivable Due fred parties Lou to related parties Cash and bumble SUM 195.241.30 52.50 33.45AS 1941 21. N0.115.253 261 11 11 000 Standalone statement of financial position As at 31 December 2019 2018 AED AED Note ASSETS Non-current asset Property and equipment Investments in subsidiaries 4 2.2 1,213,595 1,012,984 1,343,582 2,356,566 1,213,595 5 11 Current assets Inventories Trade and other receivables Due from related parties Loan to related parties Cash and bank balances Total assets 179,413,089 121,670,892 80,115,253 26,318,739 407,517,973 409,874,539 5,529,691 193,441,503 52,580,863 33,455,659 24,349,497 309,357,213 310,570,808 EQUITY AND LIABILITIES EQUITY Share capital Retained earings Total equity 3,900,000 358,743,239 362,643,239 3,900,000 279,803,469 283,703,469 LIABILITIES Non-current liabilities Provision for employees' end of service benefits 355,785 355.785 252,073 252,073 Current liabilities Trade and other payables Due to a related party Bank borrowings Total liabilities Total equity and liabilities 10 11 17 1,123,523 26,729,064 19,022,928 46,875,515 47,231,300 409,874,539 6,079,568 20,415,438 120,260 26,615,266 26,867,339 310.570,808

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