Due to the COVID pandemic, in recent months Solaris has suffered disruption to their earlier positive trend in sales and profitability. The company is therefore in need of additional external financing. Based on your analysis in part b) above, explain how these developments would impact the companys leverage. ?

2020 2019 50.7 25.2 25.5 Solaris Plc Income Statement at 31 March (EUR millions) Sales Cost of sales Gross profit Operating expenses Depreciation Operating profit Interest expenses Profit before tax Taxation Net Income A 0.4 21.8 4.8 17.0 33.9 15.0 18.9 2.7 0.4 15.8 25 13.3 2.4 14.6 2.7 B 2020 2019 2020 2019 Solaris Plc Statement of financial position at 31 March (EUR millions) 14.4 6.0 6.0 6.0 294.0 Cash and short-term investments Accounts receivable Inventories Other current assets Total current assets Land Plant and machinery Total non-current assets Total assets 0.3 21.9 0.3 Trade payables and other current 16.8 liabilities 36 Total current liabilities 1.2 Non-current borrowings and bonds 03 Total non-current liabilities 21.9 Total liabilities D Share capital 413.7 Retained earnings 414.0 Total equity 435.9 Total liabilities and equity 11.1 11.1 609.0 609.0 620.1 120.0 21.0 294.0 300.0 120.0 E 738.9 739.2 761.1 141.0 761.1 135.9 435.9