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CASE4: METALANSA The balance sheet of the company METALANSAat December 31 of the last fiscal year consists of the following items, some of which are

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CASE4: METALANSA The balance sheet of the company METALANSAat December 31 of the last fiscal year consists of the following items, some of which are shown in thousands of euros fived asets; imentories; customers; cash; total assets, 7,560; capital, 2,000; reserves, 1,480; long-term debt; short-term debt, 600 ; suppliers. With respect to the income statement, it is known only that depreciation amounts to 950,000 euros and operating costs (excluding depreciation) amount to 12,067,200 euros. The company's tax rate is 35% Short-term debt consists of a cne-year loan at 9% per anmum whike bong-term debt consists of a kan at 10.384% per annum, with a repayment during the year of 250,000 euros. In addition, there are 1,600,000 shares outstanding There is additional information obtained from the latest financial report. Thus, the inventory tumover ratio is 6.3636; the average collection period associated with the customer balance at December 31 is 36 days, while the average payment period associated with the supplier balance at the same date is 70 days, with credit purchases accounting for 36% of annual saks. The financial profitability is 12.5% the acid ratio or acid test is 0.98734 and the economic profitability (BAI / AI) is 13\% MELALANA's sales are evenly distributed throughout the year. The company is studying an insestment plan for the acquisition of capital goods amounting to 800,000 euros, to be amortind for accounting purposes over ten years, it has to decide whether it is interested in obtaining the necessary financing through extemal equity or borrowed funds. This imvestment will allow you to increase anrual sakes to 15.73 million euros, although operatirg costs (excluding depreciation) will rise to 13.5 million euros. If the company financed with debt, the resources would be obtained at 12% which is higher than the rate previously paid, and would also have an impact on the company's old total debt due to the higher risk. The repayment term of the new debt would be ten years. For purposes of comparison with the main competitors, certain financial ratios are available for the sector in which the company operates. Specifically, current liabilities to total liabilities, 15.89% long-term debt to total liabilities, 23.34% long-term debt to equity, 38.31% total debt to total liabilities, 39.23% interest coverage ratio 4.25 and financial disbursement coverage ratio 2.10 . Lsues to be resolved: 1. Complete MerNinsis balance sheet and income statement. 2. Study uhich source of financing is most comvenient for the company, considening the impoct on its risk and performance indicators

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