The managing director of Knox Limited has approached your organisation requesting asubstantial increase in their credit facilities in order to fund an expansion programme. Youare presented with the latest set of abridged accounts below. Knox Limited Profit and Loss Account for the year ended 31 December 20132013 2012 Turnover 8,030 7,300Cost of sales 4,818 4,234Gross profit 3,212 3,066Distribution costs 1,606 1,320Admin expenses 600 4802,206 1,800Operating profit 1,006 1,266Interest 200 200Profit before tax 806 1,066Tax 286 372Profit attributable to shareholders 520 694Dividend 320 400Retained profit 200 294Balance sheet as at 31 December 20132013 2012 Fixed assetsPlant and machinery 4,000 3,960Current assetsStocks 1,800 1,392Debtors 960 800Bank 40 2382,800 2,430Current liabilitiesTrade creditors 520 200Proposed dividend 320 400Taxation 160 170Accruals 100 1201,100 890Net current assets 1,700 1,5405,700 5,50010% debenture 2,000 2,000Financed by: 3,700 3,500Ordinary shares of 1 900 900Retained profit 2,800 2,6003,700 3,500