Question 3: Mini case [O2, O3] [ 7 marks x 2 = 14 marks]

Referring to the following data of the Omani Company, answer A and B: -

(Note; Write all related Equations regarding the questions)

1. The company manager targets to increase the current ratio in the year (2021) by 30% out of the previous year (2020), this requiring to increase the amount of the total current asset. To what level can the manager increase the total current asset to achieve this target (30%) at (2021)?
   1. (Suppose the other things are fixe)
2. The manager put a plan to increase the Time interest Earns (TIE) in the (2021) by (17%) out of the previous year (2020) to increase sales. How much will this plan to add amount to the accounts receivable (Suppose the other things are fixe)

Data of 2020
Total Asset Turnover	2.5 Times
Net Fixed Asset	600 (Thousand OMR)
Total Liabilities	500 (Thousand OMR)
Sales	2000 (Thousand OMR)
Quick Ratio	1.5 Times
Accounts Receivable	150 (Thousand OMR)
Long-term Liabilities	200 (Thousand OMR)