Wolszczak Lad has issued convertible notes under an agreement to maintain net assets, defined in the agreement as assets minus all liabilities except the convertible notes, at an amount not less than 2 times the amount of the convertible notes ised. Also under the agroement, working capital is to be maintained at not less than 100s of the convertible notes issued. Certain financial information for Wolszczak Lad is presented below WOLSZCZAK LTD Adjusted Trial Balance As at 30 June 2012 Debits Credits Cash at bank Marketable securities S100.000 750,000 740.000 Accounts receivable Allowance for doubteful debts Inventories Prepaid expenses Land $30,000 s00000 60,000 I80.000 1560.000 Buildings Accumulated depreciation- buildings Equipment Accumulated depreciation - equipment Accounts payable Loan payable (due 30 June 2013) Accrued expenses payable Convertible notes Share capital - ordinary Retained camings 210,000 L.000 420,000 690,000 750,000 60,000 2.000,000 1.200,000 670,000 56,030,000 S6,030,000 Additiomal informatiom 1. customers that were not received until 2 July 2012 on the basis that such collections were probably in the mail before midnight on 30 June 2012. Wolszczak Lad had recorded as at 30 June 2012, S160.000 of collections from its In the afternoon of 2 July 2012, Wobczak Lad issued cheques to its creditors, dating and recording the cheques as at 30 June 2012 The cheques amounted to Sl60,000, which is equal to the collections in transit. 3. Wolszczak Lad is considering a l-day estension on the due date of the loan payable to I July 2013. Required a) Contrast, by means of comparative ratios, the reported conditions with those that you believe more appropriately represent the financial position of the company. Limit your comparison to the convernible note holden' agreement (15 marks) b) Has the company met the conditions of the agreement Explain. (15 marks)