The financial statements of Old Chang Kee Pte Ltd are given below: Old Chang Kee Profit & Loss for Year ending 31 March ($'000) 2019 2018 2017 89,789 85,487 78,345 (32,251) (33,249) (28,721) 57,538 52,238 49,624 Revenue less Cost of goods sold Gross Profit less Expenses Selling and distribution Administrative Other expenses Operating Profit (38,039) (35,291) (32,333) (12,892) (11,782) (11,614) (1,774) (1,791) (4,504) 4,833 3,374 1,173 Interest income Other income Profit before interest & tax 64 1,145 6,042 49 1,680 5,103 81 1,351 2,605 Share of results of joint venture less Interest expense Profit before tax (301) (329) 5,412 (76) (291) 4,736 (175) 2,430 less Tax Profit after tax (1,074) 4,338 (952) 3,784 685 1,745 Other comprehensive income Net profit 76 4,414 (19) (1,703) 3,765 42 2019 2018 2017 LIQUIDITY CURRENT RATIO QUICK RATIO 1.48788 1.291013 1.266267 1.324996 1.104062 1.041093 81.84959 71.71728 111.1277 Asset Management Inventory Turnover Average collection Period Total Asset Turnover 1.763439 1.667356 1.544901 Debt Management Debt Ratio Times Interest Earned 0.789261 0.864536 0.852561 Profitability Gross Profit margin Operating Profit Margin Net Profit Margin 64% 5% 5% 61% 4% 4% 63% 1% 0% Market Values PE Market to Book 18.04598 18.29268 59.02778 (b) Answer the following questions regarding the analysis of Old Chang Kee's financial statements: (i) Interpret Old Chang Kee's liquidity and discuss whether it has any difficulty paying its creditors. (ii) Which ratios computed in part (a) suggest that the inventory level is relatively low. Briefly discuss why this is so. (iii) An analyst computed the expected earnings of the company to be $0.05. Based only on the PE ratios you have computed and the financial data given in the question, what would be a reasonable value of each share? Examine and explain. (iv) Discuss why Old Chang Kee's stock price is very much higher than its net asset value. (24 marks)