Dr. Peterson sits at his desk wondering whether returning to his practice would be better than having to contemplate meeting with his banker this afternoon It was a fantastic thing some 15 years ago when he stumbled on a simple but brilliant idea to make drawing blood easier from patients and EZBlood Inc was born. The device was quickly patented, and he has not looked back. The business had become more demanding than he expected in the last few years competitors have entered the market, posing challenges for Dr Peterson. One such company gives him frustration BloodsRUs Ltd stood out, they were constantly undercutting prices and lacking quality He had thought things were going well, but lately, he had been pouring himself over financial statements - how could he help his firm grow and make money to remain competitive Dr Peterson needs to purchase new technology to allow his device to be created in a manner that keeps quality. Still, he would be able to produce more volume in comparison to his competitor. He believes that he could even drop his price to squeeze his competitor out Dr. Peterson was also confused that EZBlood was growing and making money, but it never seemed to have enough cash Today Dr. Peterson has an appointment scheduled with you Dr Peterson explains to you "I am confused that EZBlood was growing and making money, but it never seemed to have enough cash 6 1 Dr. Peterson had sent you his financials ahead of todays meeting. You have calculated his ratios, you look to the below ratios to help explain to Dr.Peterson. What can you advise him on how to improve the cash position?(2 marks) Accts Rec of Sales(DSO) Inventory Turnover 2018 2019 020 Aindustry Average 53.98 Days 61.99 Days 73 Days 30 Days 1.08 Times 1.56 Times 1.44 Times 5.6 Times a Et A- A-T BIUS X, X Co Styles Font Size Words: 0 2. Your bank policy requires a rule of thumb for company's liquidity to have a current ratio of 225: Here are the current ratio calculation for the last few years for EZBlood Inc.[2 marks) 2018 2019 2020 Current Ratio 2.94 198 As a banker you want to assist your client, do you foresee a problem? If so, how could Blood Inc work to correcting the problem?(2 marks) 5.18 T! d HE E ** A- A-X BIUS X, X Styles Font Site Words: 0