QUESTION ONE You are a small business account manager at First NZ Bank. One of your clients, World Market & Caf refurbish their below: belorwish their kitchen. Comparative financial statements for World Market& Caf are given Statements of Financial Performance for the years ended 30 June 2016 2015 Sales Cost of Goods Sold Gross Profit Interest Expense Other expenses Net Profit Before Tax Taxation (30%) Net Profit After Tax 790,000 773,000 494,000 456,000 296,000 317,000 15,000 14,000 220,000 241,000 61,000 62,000 18,300 18.600 42,700 41,400 Statements of Financial Position for the years ended 30 June 2016 2015 Cash at Bank Accounts Receivable Inventory Other Non-current Assets Total Assets 41,000 43,000 79,000 74,000 210,000 203,000 4,000 5,000 160,000 141.000 494,000 466000 Current Liabilities Non-current Liabilities Shareholders' Equity 117,000 94,000 140,000 140,000 237000 232.000 494,000 466,000 Selected Additional Information 2016 2015 Credit purchases and borrowings for year to 30 June 77,000 64,000 Selected Industry Ratios Current Ratio Quick Ratio Average Settlement Period for Accounts Payable Average Inventory Turnover 2.75 times 1.25 times 156 Days 160 Days ACCY 111 Page 2 of 10