Question 1 From the following information, Prepare Balance sheet as at 31/12/2020 (4Marks) OMR OMR Account Receivables 25,000 Sundry Debtors 15,000 Account Payable 15,000 Sundry Creditors 18,000 Capital 75,000 Drawing 10,000 Plant and machinery 50,000 Sales 90,000 Cash 5,000 Bank Overdraft 7,000 Discount received 8,000 Salary expenses 18,000 Furniture 15,000 Premises 90,000 Long term loan 30,000 Closing stock 10,000 Insurance paid 10,000 Rent received 25,000 Net income 60500 Question 2 From the following information, Calculate A. Gross Profit Ratio, B. Net Profit Ratio (3Marks) 80000 60000 5000 85000 particulars Amount (RO) Inventory (1-1-2020) Inventory (31-12-2020) Carriage Inwards Carriage outwards 10000 Purchases Administration Expenses 6000 Purchase returns Sales discount Rent Expenses Salary Expense Commission received Commission received Sales Sales returns 3000 2000 6000 4000 16000 8000 155000 3000 Question 3 From the following balance sheet of ABC Co. Ltd. as on31st March 31, 2020. Calculate A. Debt to Total Fund Ratio B. Debt to Equity Ratio (3 Marks ) ABC Co. Ltd. Balance Sheet as at 31 March, 2015 Equity And Liabilities Assets Amount (OMR) Amount OMR) 1300000 1000000 Fixed Assets Capital Reserve Surplus 150000 Inventory 250000 200000 Account Receivable 150000 Long Term Borrowings Debentures 100000 200000 300000 Cash Short term Investment Prepaid Expense Account Payable Bills payable Bank Overdraft 100000 100000 50000 200000 Total 2050000 2050000 Question 4 Imagine you are the CEO of Franklin Incorporation. Answer the two questions given below: a) What are the steps you would take to effectively manage the working capital management? (2 marks) b) 'A high Inventory will be a negative sign for the Company since there is a chance of the Inventory becoming obsolete.'-Comment on this statement using your own words and relevant information