Pulsar Inc. is a lumber manufacturer from Ontario, Canada. Pulsar's operations are very working capital intensive, as it has to maintain inventory as well as extend credit to its customers. Hence, Pulsar has set up a funding line of credit with the bank to manage its working capital needs. It has currently an approved limit of $200,000. The bank has informed Pulsar of the following restrictions/constraints on borrowing under this line: - 60% of the receivables less than 90 days old - 50% of finished goods inventory - Debt/Equity ratio no worse than 0.5:1 Here is the snapshot of Pulsar's latest financial information: Pulsar has accounts receivable worth $150,000 and inventory worth $200,000 The ageing schedule of the receivable is as follows: Inventorv Total liabilities of the company is $400,000 while the total equity position is $1,000,000. Use the above information to answer the following questions. Questions must be answered in a Word DOC. Questions: 1. Does Pulsar Inc. qualify to borrow against the credit line? 2. How much would be the maximum amount the bank would lend to Pulsar Inc. under the credit line? 3. Pulsar Inc.'s owner has another company where she has an outstanding balance in the Due to Shareholder account. She was advised by the public accountants to register the debt with the Personal Property Security Act (PPSA) just to be on the safe side. a. Explain the key elements of the PPSA in your own words and why they would benefit Pulsar Inc.'s owner