INCOME STATEMENT OF BELL LIMITED 2012 2013 fear Revenue Cost Of Sales Gross Profit Less: Expenses Net Profit 4,700 3,600 1,100 780 320 6,700 4,800 1,900 1,150 750 REQUIRED: Prepare a briefing note for the management of Belil PLC which should: (i) Assesse Bdl Limited's working capital management over the two years ended 31st December 2013 by calculating and commenting on the Stock days, Debtor days, Creditor days and the Operating Cycle. Further assess the liquidity levels by computing the Current ratio and Quick ratio. (15 marks) (ii) The bird-in-the-hand argument, which states that a dividend today is safer than the uncertairn prospect of a capital gain tomorrow, is often used to justify high dividend payout ratios. Explain the fallacy behind this argument.. (10 marks) Total (25 marks) INCOME STATEMENT OF BELL LIMITED 2012 2013 fear Revenue Cost Of Sales Gross Profit Less: Expenses Net Profit 4,700 3,600 1,100 780 320 6,700 4,800 1,900 1,150 750 REQUIRED: Prepare a briefing note for the management of Belil PLC which should: (i) Assesse Bdl Limited's working capital management over the two years ended 31st December 2013 by calculating and commenting on the Stock days, Debtor days, Creditor days and the Operating Cycle. Further assess the liquidity levels by computing the Current ratio and Quick ratio. (15 marks) (ii) The bird-in-the-hand argument, which states that a dividend today is safer than the uncertairn prospect of a capital gain tomorrow, is often used to justify high dividend payout ratios. Explain the fallacy behind this argument.. (10 marks) Total (25 marks)