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Problem #1-For the following tasks, please refer to the information provided on the page #2 (ratios. income statement, and balance sheet of the Anandam Manufacturing Company). Part (B) Assume the company introduced a new customer management system and offered a standard price discount of 2/10 n/30. Assume further that all customers would take the new price discount and that the discount leads to an increase of sales by 20%. Credit sales remain at 90% of total sales. What would be Anandam Manufacturing's new average accounts receivable balance? Should the company offer the discount? [15 marks] Please organize your work so it is easy to read/easy to follow... Anandam Manufacturing Company Income Statement Year Ended March 31, 2015 usands INR 2015 2014 Sales Cash 800 7,200 8,000 (4,800) 3,200 Credit Total sales Cost of Goods Sold Gross Profit Operating expenses 4,320 4,800 (2,832) 1,968 Selling, General and Administration Depreciation (1,000) (660) 1,540 (340) 1,200 (360) 840 400 EBIT Interest expenses EBT Tax (30%) Net profit (288) Anandam Manufacturing Company. Balance Sheet Year Ended March 31, 2015 . sands INR) 2015 2014 Assets Current assets Cash and Cash Equivalents Accounts Receivable Inventories 2,100 2,250 4,456 1,500 500 Total current assets Non-current assets Property, Plant and Equipment (cost) Less: Accumulated Depreciation Property, Plant and Equipment (net) 5,200 500 4,700 9,156 3,660 2,500 5,600 Total Assets Equity and Liability Equity Share Capital Reserve&Surplus 2,000 1,876 3,876 1,600 1,036 2,636 Total equity Current liability Accounts Payable 2,780 1,728 Non-current liability Long-term Borrowings 2,500 5,280 9,156 1,236 2,964 5,600 Total liabilities Total Equity & Liabilities Ratio Anandam Industry 22% IO Anandam Industry Return on Equi Return on Assets Gross Profit Ratio Net Profit Ratio Times Interest Earned Inventory Turnover Current Ratio Quick Ratio Receivable Turnover Receivable Days Payable Turnover Payable Days 1.60:1 9% 40% 10.5% 4.00 X 40% 18.0% 10 X 4.85 X 7.00 X 2.13 X 4.00 X 171 days