REQUIREMENT 1) Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debtet worth 60% Acid test ratio Asset turnover Day sales outstanding in accounts receivable Gross profit margin Inventory turnover 1.2 1.5 times 40 days 30% 6 times Balance sheet Cash (8 marks) (8 marks) (8 marks) (8 marks) Account:s Common stock Retained earnings payable Accounts reccivable (8 marks) RM15,000 Inventories RM22,000 Plant & cquipment (8 marks) Total liabilities Total assets (8 marks) & capital Sales Cost of goods sold (8 marks) (8 marks) 2) Discuss what precautions must one take when using ratio analysis to make financial decisions? financial analysis? How within an industry? Which ratios would be more useful for a financial manager's internal about an analyst trying to decide on which stocks are most attractive (14 marks) 3) Explain how do analysts use ratios to analyze a firm's leverage? Which ratios convey more levels of indebtedness or between a firm's level of important information to a credit analyst those revolving around the those measuring the ability to service debt? What is the relationship indebtedness and risk? What must happen in order for an increase in leverage to be successful? (14 marks)