Question 4 5 points Chapter 4 You work as an analyst in the finance department for the Bravo Corporation. The company has been listed on the Abu Dhabi Stock Exchange (ADX) since 27 July 2010 The business operates in the Basic Materials sector and is involved with the discovery, development and processing of raw materials to be used in the construction of residential and commercial buildings in the GCC region. This week, you have received a request from the firm's finance manager to assess its liquidity and cash position. You have access to the following financial statement information for the company: Income Statement Sales Cost of goods sold Gross profit Fixed expenses Depreciation EBIT 2021 7,800 (3.100) 4,700 (3,100) (1.500) 100 2020 6,100 12.300) 3,800 (2,100 (1.500 200 2021 2020 Balance Sheet Cash 430 490 420 700 210 430 1,500 1,700 1,100 810 940 4.860 390 4.250 Accounts receivable Inventory Land and buildings Machinery Other fixed assets TOTAL ASSETS Accounts payable Notes payable Long-term debt Common stock Retained earings TOTAL LIABILITIES & EQUITY 600 820 590 800 960 650 1.200 1,500 1.000 4860 1.000 TOTAL LIABILITIES & EQUITY 1.U 4.860 4.260 Calculate the number of the company's days in receivables outstanding in Year 2020. If the average industry number of days in receivables outstanding is 15, explain whether the company is doing better or worse than the industry. Why yes or why not? Explain your answer. What is your recommendation to the company's management? (1 point) Calculate the number of the company's days in inventory outstanding in Year 2020. If the average industry number of days in inventory outstanding is 75, explain whether the company is doing better or worse than the industry. Why yes or why not? Explain your answer. What is your recommendation to the company's management? (1 point) Calculate the number of the company's days in payables outstanding in Year 2020. 6 If the average industry number of days in payables outstanding is 100, explain whether the company is doing better or worse than el 2020. 6 If the average industry number of days in payables outstanding is 100, explain whether the company is doing better or worse than the industry. Why yes or why not? Explain your answer. What is your recommendation to the company's management? [1 point) d. Determine whether the Bravo Corporation needs to borrow money to finance their business in Year 2020. Support your answer with both an explanation and calculations. 2 points) II e w C
