He chose a company from the non-financial companies whose shares are traded in the Saudi Stock Exchange (Tadawul) and assuming that it achieves a return on current assets of 4%, and 9% on fixed assets, and the cost of current liabilities is 3%, and the cost of long-term liabilities is 5%. Assuming that the total assets will not change, as well as the total liabilities and equity.
1 . Demonstrate the effect of a 10% increase in current assets on profits and risk. (5 degrees)
2 . Demonstrate the effect of a 10% decrease in current assets on profit and risk. (5 degrees)
1 . Demonstrate the effect of increasing current liabilities by 10% on profit and risk. (5 degrees)
2 . Demonstrate the effect of a 10% decrease in current liabilities on profits and risks. (5 degrees)
Note: The statement of financial position must be attached with the answer