Required: Use the above ratios to answer the following:

a) Comment on Millers profitability, with reference to one of the above ratios. (2 marks)

b) Miller wants a 10-year loan, and they have approached you, a bank loans officer. What answer would you give them? Use two of the above ratios to briefly explain your answer. (3 marks)

c) Would you buy shares in Miller? Refer to the most important ratio when providing your answer. (2 marks)

d) Miller wants you to sell them inventory on credit, with terms n/60 (ie 60 days to pay). What would your answer be? Refer to the most important ratio when providing your answer. (2 marks)

Miller Ltd. - Financial Ratios 2021 11% 12.4X 9.0X 1.8 14X Industry 9% 13.5X 8.3X Profit margin Receivables turnover Inventory turnover Current ratio Capital asset turnover Times interest earned Debt to total assets Return on assets Return on equity 2020 10% 14.3X 8.5X 1.5 13X 4X 32% 15% 20% 8X 5X 3X 34% 17% 21% 28% 10% 18%