QUESTION 4 (25 MARKS) i Zalin Corporation's Balance Sheet and Income Statement as shown below: BALANCE SHEET (in thousand of dollars) ASSETS 2019 2018 Current Assets 20,000 19,000 Recieveables 7,000 3,500 Inventories 25,000 23,000 Total 52,000 45,500 Cash Fixed Assets Total Assets 25,000 77,000 19,400 64.900 2019 2018 7,000 LIABILITIES Current Liabilities Accounts Payable Notes Payable Other Total 560 9,000 670 4,200 13,870 5,100 12,560 6,000 46,240 64.900 Long-term Liabilities 7,430 Equity 55,700 Total Liabilities and Equity 77,000 NET INCOME (in thousand of dollars) 2019 Net Sales 100000 Cost of Goods Sold 70000 Other Operationg Expenses 25000 Operating Profit 5000 2018 95000 65000 24000 6000 Other Income Interest Tax 8000 800 2300 7500 800 2450 Net Profit Dividends Retained Earnings 9900 450 9450 10250 450 9800 You are required to calculate the following for the year 2019. a) Inventory Turnover Period b) Account Receivable Period c) Account Payable Period d) Cash cycle (13 marks) 11 Why do you think offering debt is more common as compared to equity? (5 marks) iii. In 2018, a lecturer of finance purchased 11 IPOs of stocks. He sold each of them after keeping them for a month. He tried to apply for all the 20 IPOs in Tech sector. Out of 20,9 did not allocate any shares. Out of the 11 purchased, 4 offerings issued less than the requested shares. The year 2018 was bullish for Tech stocks. The stocks of the 20 companies which went public saw a 70% rise in their initial share price. When the lecturer checked his account, he found that his total return was only 17%. Please explain whether he was unlucky or should you have expected him to do worse than an average IPO investor. (7 marks)