QUESTION 1 SUNRISE Corporation is applying for a loan from Exim Bank to finance its project. As a financial manager of the bank, you are required to evaluate the company's financial performance in comparison with the industry. The following information is given for the analysis. SUNRISE CORPORATION STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER 2017 Cash 30,000 Account payable 460,000 Marketable securities 600,000 Accrued expenses 150,000 Account receivable 830,000 Notes payable 270,000 Inventories 400,000 Other current liability 200,000 Net plants & equipment 2,140,000 Long term debt 1,000,000 Common shares 320,000 Retained earnings 1,600,000 Total Assets 4,000.000 Total Claims 4,000.000 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDING 31st DECEMBER 2017 RM Sales 7,000,000 Cost of Goods Sold 2,600,000 Gross profits 4,400,000 Less: Selling & Administrative Expense 3,700,000 Interest expense 120,000 Earnings before taxes 580,000 Less: Taxes 140,000 Earning after tax 440,000 Industry Average Ratios Current ratio Quick ratio Average collection period Inventory turnover 2.0 x 1.8 x 40 days 8.4 x Operating profit margin Return on equity Debt ratio Times interest earned 8% 19% 45% 7.8 x a) Calculate the relevant financial ratios for SUNRISE Corporation. (12 marks) b) Analyse the overall performance of the company based on liquidity, activity, profitability, and leverage ratios. (Note: Use 360-day for calculation) (8 marks)