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In early 2018 your client has been requested to sell a large volume of goods on extended terms to a potential new customer called BAB Limited, which has been trading for three y BAB is a wholesaler and most of its business costs are purchases. Your client has expresse some doubts about the financial stability of BAB and has asked for your advice. You have obtained copies of the two most recent sets of BAB'S audited accounts which a summarized as follows: 2017 #'000 2018 #'000 Equipment net of Depreciation 1.200 1,100 Premises 800 450 Inventory 280 540 Receivables 160 490 Cash/(Overdraft) 80 (90) Payables (390) Net Asset 12580 2.380 2,100 Share Capital 800 800 Loan from Directors 1.100 700 Cumulative Retained Profits 480 600 Capital 2,380 2,100 Turnover(Sales) 2,400 2,900 Operating Profit 160 210 Dividends paid (140) 2520 40 90 a The Managing Director of BAB Limited has made the following statement to your client: BAB has a consistent history of profitability. We are investing in the future of the company this has strained our cash flow position. However, BAB is poised for growth and our accep of you as a supplier will be opportunity for you to participate in our inevitable success. Required (a) Calculate the following business metrics for BAB in 2017 and 2018- Return on Capital Employed, Profit Margin on Sales, Current Ratio, Quick Ratio, Asset Turnover, Dividend P Share, Receivable days, Inventory days, Payable days and Cash Conversion Period. (b) Critically appraise the Managing Director's comment quoted above and advise your clie whether or not he/she should extend significant amounts of credits to BAB Limited.(20 ma