Solve the questions in the attachments

The following information is provided in respect to the affairs of Pote Limited which prepares its account on the calendar year basis. 1995 1994 Shs. Shs. Sales 600,000 500,000 Purchases 400,000 350,000 Cost of goods sold 360,000 330,000 Stock at 31 December 100,000 60,000 Debtors at 31 December 98,000 102,000 Creditors at 31 December 40,000 25,000 Total assets at 31 December 300,000 185,000 Stock and debtors at 1 January 1994 amounted to Sh. 70,000 and Sh.98,010 respectively. Required a) Calculate the rate of stock turnover expressed: As a ratio; In days, for each of the years 1994 and 1995. b) Calculate the rate of collection of debtors, in days, for each of the years 1994 and 1995. c) Calculate the rate of payment to creditors, in days, for each year 1994 and 1995. d) Show the cash operating cycle for each year. e) Comment on the results.How can the action of shareholders reduce the value of the bond held by debenture holders? b) State and explain the mechanism of resolving the agency problem between shareholders and debenture holders. C) Explain the term 'gearing' in relation to the capital structure of a limited liability company. d) Ayet Ltd. and Bayet Ltd. are two small size companies operating in Mombasa, Kenya. The following information has been provided for the year ended 30 April 1998: Ayet Ltd. Bayet Ltd. Shs. Shs Ordinary share capital Sh.10 par 600,000 1,800,000 10% preference shares of Sh.10 par 600.000 1,200,000 1,800,000 Retained profits 800.000 1.200,000 2,000,000 3,000,000 15% Debentures 2,000.000 1.000,000 Capital employed 4,000,000 4,000,000 Required Calculate the gearing ratio of each company and state in each case whether the gearing is high or low. (Calculate to 2 decimal places). Calculate the maximum percentage dividend on ordinary shares which each company could declare, without utilizing, or adding to, accumulated retained profits if profits for the year ended 30 April 1998 was: Ayet Ltd. Bayet Ltd. Shs. Shs. Net profit (before Interest and 500,000 1,000,000 tax) (Corporation tax rate is 40%) Comment on the results of b(#) above