Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result

and its interpretation.

Analyze if the following firm exhibits or not overtrading by interpreting the five sets of rations and the signals. Consider the

Overdraft limit is $120m. Calculate Current ration, Quick ratio, Account receivables and account payable days, Inventory days and

Sales to Working capital.

Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its interpretation Analyze if the following firm exhibits or not overtrading by interpreting the five sets of rations and the signals. Consider the Overdraft limit is $120m. Calculate Current ration Quick ratio, Account receivables and account payable days, Inventory days and Sales to Working capital. 2021 2022 year 4500 6000 Sales Revenue 2000 3000 Cost of Sales (COGS) 2500 3000 Gross Profit 250 220 Net profit Current assets Current assets Inventories 300 230 Account receivables (note 1) 500 440 Short term investment 20 30 Cash at bank and in hand 60 52 880 752 Accounts payable (falling due within 1 year) Loans and overdrafts 80 50 Corporation taxes 33 18 Dividend 20 15 33 18 Corporation taxes Dividend 20 15 Accounts payable (note2) 600 550 733 633 Net current assets 147 119 Notes: 1. Trade account receivables 460 410 2. Trade account payable 590 520