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Please help to solve the following problems, as this task is due soon but I have no more attempts to post separately. After you provide

Please help to solve the following problems, as this task is due soon but I have no more attempts to post separately. After you provide the answer, I will give you a thumbs up. Really Thanks.

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Mr Kong was hired as the analyst manager of MyBank. He and his team are conducting an independent evaluation of YTG Ltd. YTG Ltd. is a company specializing in the production of imported medical products from China. Mr Kongs assistant provided the following data for YTG Ltd. and its industry.

Ratio

2015

2016

2017

2018

Industry Average (2018)

Long-term debt

0.34

0.35

0.4

0.45

0.35

Inventory Turnover

31.29

32.25

42.42

62.65

53.25

Depreciation/Total Assets

0.01

0.018

0.014

0.25

0.015

Days sales in receivables

90

94

98

113

130.25

Debt to Equity

0.94

0.9

0.85

0.75

0.88

Profit Margin

0.053

0.06

0.07

0.082

0.075

Total Asset Turnover

0.79

0.7

0.65

0.54

0.40

Quick Ratio

1.021

1.029

1.03

1.028

1.031

Current Ratio

1.11

1.15

1.21

1.33

1.25

Times Interest Earned

4.219

4.45

4.375

0.9

4.65

Equity Multiplier

1.85

1.9

1.85

1.75

1.88

REQUIRED:

a. The CEO of YTG Ltd. wrote in the annual report to shareholders: In terms of our ability to fulfil short-term debt, 2018 is a good year for the company. We have high liquidity, mainly due to the high liquidity. High assets (cash, accounts receivable and short-term securities) have increased. Is the CEO, right? Interpret and use relevant information in Mr Kong analysis. (5 marks)

b. What is your opinion on the company's asset management? Provide the above information as completely as possible, but do not use any irrelevant information. (5 marks)

c. You need to provide shareholders with an assessment of the companys solvency and leverage. Provide the above information as completely as possible, but do not use any irrelevant information. (5 marks)

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