questions carry equal marks. Question 1 Calculate the following ratios for the firms in the table. The ratios are Current, Acid-Test, Accounts Receivable turnover, Average Collection Period, and Inventory Turnover. Which of the three firms is more likely to be successful in its loan application at your bank and why? 1. Which of the three firms is most efficient in its Inventory management? tu. Which of these firms is most efficient in its accounts receivable management? Item (Ghe millions) Currentes Accounts receivable Cash and marketable securities Inventory Other current assets Sales Cost of goods sold Total current liabilities Dawhanya Electronics 124.712 17.908 96.282 2,902 Miosto Computers 89,378 30.143 41.601 2.349 15.085 233,715 140,089 80610 Afienya - Servies 51,787 7.0R3 7584 4.288 32,832 103.355 78,596 42.191 93.580 63,038 49,858 Question 2 What is an annuity? Give an example of an annuity. 1. What is the difference between an Ordinary Annuity and an Annuity Due? it. Prepare a loan amortization schedule for the loan of 6,000 to be repaid in 4 years at an interest rate of 15 per annum. Question 3 . Explain the following terms related to bonds: Bond indenture 1. Par or face value Coupon interest rate iv. Maturity and repayment of principal A bond has a face value or par value of $1,000 and an 8 percent coupon rate or Yield to Maturity, and a tenor of 5 years. Interest is paid semi-annually. i. How much interest will the Bondholder earn during the period? 1. How much will the Bondholder receive at the end of year 5? What is the value of the Bond at the end of year 3