MMME3088 1. (a) The balance sheet below is from PZ Zone Brothers based on their operations in the year 2018 and 2019 of business operation. They generated revenue of 720,000 with profit after tax of 63,000 in 2019 and revenue of 600,000 with profit after tax of 56,000 in 2018. Your company is thinking of acquiring them to reduce costs in the long run for raw materials and bought out parts. As the Chief Financial Officer, by using at least three financial ratios, justify your analysis and recommendation to the management. (6 marks) Balance Sheet for PZ Zone Brothers as at 31 December 2019 2019 2018 EC,000) 6,000) EC,000) Fixed Assets EC,000) Land and buildings 600 615 Plant and equipment 555 503 1,155 1,118 Current Assets Inventories (stock) 115 82 Trade receivables (debtors) 89 61 Prepayments 10 9 Banks 6 46 220 198 Current Liabilities Trade payables (creditors) (45) (30) Taxation (21) (19) Accruals (29) (25) (95) (74) 125 124 Net Current Assets 1,280 1,242 Net Assets Capital and Reserves (Ownership Interest) 800 800 Share capital (400) (400) Loans 880 842 Retained earnings 1,280 1,242